Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Whitley Bay. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Whitley Bay have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful attention before delaying your Whitley Bay lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Whitley Bay can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Whitley Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Alex, came critically close to the 80-year mark with the lease on his first floor apartment in Whitley Bay. In buying his flat two decades ago, the lease term was of minimal significance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Alex extended the lease just under the wire last August. Alex and the freeholder via the managing agents eventually settled on sum of £6,000 . If he had missed the deadline, the price would have escalated by at least £925.
Dr S François acquired a basement apartment in Whitley Bay in September 1996. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Whitley Bay with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed on 22 August 2104. Given that there were 78 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
In 2011 we were approached by Dr Mason Adams who, having was assigned a lease of a ground floor apartment in Whitley Bay in August 2003. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparative premises in Whitley Bay with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease ended in 2093. Having 67 years left we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including legals.