The re-sale value of a leasehold property in Consett depends on how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded well before the eighty year mark. Leasehold Reform legislation enables Consett qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Consett with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Consett can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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.
Half a year ago Blake, started to get near to the 80-year mark with the lease on his two bedroom apartment in Consett. In buying his flat twenty years ago, the unexpired term was of minimal importance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Blake arranged for a lease extension at the eleventh hour in April. Blake and the landlord ultimately settled on sum of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £850.
Dr Benjamin Taylor acquired a newly refurbished apartment in Consett in September 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Consett with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish in 2099. Given that there were 73 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Mr L Gray moved into a basement apartment in Consett in June 1998. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparative premises in Consett with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 collected quarterly. The lease finished in 2088. Taking into account 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus legals.