Whitley Bay leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Whitley Bay will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 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 are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Whitley Bay,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Whitley Bay valuers.
Following unsuccessful correspondence with the freeholder of her ground floor flat in Whitley Bay, Francesca commenced the lease extension process as the 80 year threshold was rapidly nearing. The transaction was finalised in April 2012. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were contacted by Dr Oscar Bertrand , who took over the lease of a studio apartment in Whitley Bay in May 1996. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Similar premises in Whitley Bay with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 collected per annum. The lease expiry date was in 2090. Taking into account 64 years outstanding we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
Last month we were e-mailed by Dr Andrew Campbell , who bought a ground floor apartment in Whitley Bay in October 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical residencies in Whitley Bay with 100 year plus lease were worth £184,000. The average amount of ground rent was £55 invoiced annually. The lease expired in 2079. Given that there were 53 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.