The re-sale value of a leasehold property in Consett is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised ahead of the eighty year cut off point. Current legislation enables Consett qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Consett with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Consett leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her first floor apartment in Consett, Katherine started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in January 2008. The freeholder’s costs were restricted to about 550 pounds.
In 2011 we were called by Dr D Scott who, having moved into a first floor apartment in Consett in August 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable premises in Consett with a long lease were in the region of £223,400. The average ground rent payable was £60 invoiced monthly. The lease expired on 22 January 2084. Taking into account 59 years remaining we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
In 2014 we were contacted by Mr and Mrs. Y Morel who, having moved into a studio apartment in Consett in March 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Consett with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2104. Considering the 79 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.