The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Consett can extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before delaying your Consett lease extension. Putting off that expense now simply escalates the price you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 Consett can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Consett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her one bedroom flat in Consett, Phoebe started the lease extension process as the 80 year threshold was rapidly coming. The lease extension completed in October 2010. The landlord’s charges were kept to an absolute minimum.
Dr Jack Gray was assigned a lease of a one bedroom apartment in Consett in January 2012. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable properties in Consett with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease termination date was on 9 July 2095. Having 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
In 2013 we were called by Mr U Roux who, having bought a newly refurbished apartment in Consett in August 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical residencies in Consett with an extended lease were valued about £223,400. The average amount of ground rent was £60 invoiced yearly. The lease ended on 3 September 2084. Taking into account 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus costs.