On the balance of probabilities if you own a flat in Whitley Bay you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Whitley Bay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Alex owned a 2 bedroom flat in Whitley Bay on the market with a lease of fraction over sixty years remaining. Alex informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to exercise his statutory right. Alex procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last year we were called by Mr and Mrs. D Mitchell , who took over the lease of a garden apartment in Whitley Bay in June 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable residencies in Whitley Bay with 100 year plus lease were valued about £191,400. The average ground rent payable was £55 invoiced per annum. The lease ran out on 12 October 2080. Taking into account 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus professional charges.
Mrs G Roux bought a studio flat in Whitley Bay in October 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Whitley Bay with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out on 21 September 2100. Considering the 74 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.