With a domestic leasehold premises in Consett, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Consett with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Consett with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Consett,the lease extension lawyers 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 Consett valuers.
Ali was the the leasehold proprietor of a high value apartment in Consett being sold with a lease of a little over 72 years remaining. Ali on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Dr L Nguyen bought a recently refurbished apartment in Consett in August 2003. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Consett with a long lease were worth £191,400. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed on 3 April 2078. Taking into account 54 years outstanding we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including fees.
In 2013 we were called by Mr Finley Martínez who, having completed a one bedroom apartment in Consett in July 2008. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar residencies in Consett with 100 year plus lease were valued around £295,000. The average amount of ground rent was £45 collected yearly. The lease finished in 2098. Given that there were 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.