With a residential leasehold property in Wallsend, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years left. Residents in Wallsend with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Wallsend with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a landlord in Wallsend,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wallsend valuers.
Dylan was the the leasehold proprietor of a conversion apartment in Wallsend on the market with a lease of fraction over 59 years outstanding. Dylan on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last October we were called by Dr Tia Peterson , who purchased a first floor flat in Wallsend in May 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Wallsend with a long lease were worth £174,200. The mid-range ground rent payable was £55 billed yearly. The lease terminated in 2077. Considering the 51 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
Dr Bethan Moore took over the lease of a first floor flat in Wallsend in June 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Wallsend with a long lease were worth £285,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed in 2097. Considering the 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.