Unfortunately that a Consett residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Consett property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining slips under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Consett will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Consett with in excess of 100 years remaining 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you better control over the value of your Consett leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted correspondence with the landlord of her garden apartment in Consett, Victoria commenced the lease extension process as the 80 year mark was rapidly coming. The lease extension was finalised in September 2007. The freeholder’s costs were restricted to a tad over 700 GBP.
In 2010 we were e-mailed by Ms D Kelly who, having acquired a basement apartment in Consett in August 2000. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Consett with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 billed monthly. The lease ended in 2101. Having 75 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Last year we were e-mailed by Mr J Morel , who owned a studio apartment in Consett in May 2008. The question was if we could approximate the price would be for a ninety year extension to my lease. Similar homes in Consett with a long lease were worth £250,400. The average ground rent payable was £65 collected per annum. The lease termination date was in 2090. Given that there were 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.