With a domestic leasehold property in Wallsend, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Anyone in Wallsend with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Wallsend leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold proprietor of a studio flat in Wallsend being sold with a lease of fraction over sixty years outstanding. Harvey on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mrs Olivia Johnson was assigned a lease of a one bedroom apartment in Wallsend in November 1999. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable premises in Wallsend with an extended lease were valued around £270,000. The mid-range amount of ground rent was £65 billed per annum. The lease finished in 2093. Having 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Mr and Mrs. O Evans took over the lease of a newly refurbished apartment in Wallsend in November 2004. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative residencies in Wallsend with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 collected quarterly. The lease lapsed in 2082. Considering the 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.