Unfortunately that a Consett residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Consett property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most flat owners in Consett will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Consett with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society |
Lease extensions in Consett can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Consett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Charlie, started to get near to the 80-year threshold with the lease on his first floor flat in Consett. Having purchased his flat two decades ago, the lease term was of little importance. Fortunately, he noticed he needed to take action soon on Extending the lease. Charlie arranged for a lease extension just under the wire in April. Charlie and the landlord eventually settled on sum of £5,000 . If the lease had fallen below eighty years, the sum would have escalated by at least £1,000.
Last Winter we were phoned by Mr and Mrs. H Morgan , who purchased a first floor apartment in Consett in January 2006. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Consett with a long lease were valued around £189,000. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed on 5 July 2079. Having 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.
In 2010 we were e-mailed by Mr and Mrs. G Ricardo who, having completed a garden flat in Consett in July 2007. We are asked if we could estimate the price would be for a ninety year lease extension. Identical properties in Consett with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed annually. The lease came to a finish on 1 October 2099. Considering the 73 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.