The nearer a residential lease in Peterlee gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Peterlee will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The lawyers that we work with undertake Peterlee lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Logan was the the leasehold proprietor of a 2 bedroom apartment in Peterlee being sold with a lease of fraction over fifty eight years outstanding. Logan on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Winter we were contacted by Mr and Mrs. T Laurent , who purchased a ground floor apartment in Peterlee in May 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical homes in Peterlee with a long lease were worth £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2098. Having 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last March we were contacted by Mrs Poppy Bell , who completed a one bedroom flat in Peterlee in July 2011. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Peterlee with a long lease were valued about £261,600. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2078. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.