The nearer a domestic lease in Wallsend gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Wallsend will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Wallsend valuers.
Following protracted negotiations with the freeholder of her two bedroom flat in Wallsend, Abigail initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in June 2008. The landlord’s costs were restricted to a tad over 550 pounds.
Last Summer we were e-mailed by Mr D González , who completed a one bedroom apartment in Wallsend in May 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Wallsend with a long lease were worth £184,000. The average ground rent payable was £55 billed annually. The lease concluded in 2078. Taking into account 53 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Mr Aiden Alexander purchased a one bedroom flat in Wallsend in October 2008. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Wallsend with a long lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease ran out in 2098. Given that there were 73 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.