The value of Peterlee leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than eighty years
Leasehold premises in Peterlee with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
Engaging our service gives you better control over the value of your Peterlee leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a conversion flat in Peterlee being sold with a lease of just over fifty eight years unexpired. Connor on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Spring we were e-mailed by Dr N Howard , who was assigned a lease of a ground floor flat in Peterlee in July 2012. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar homes in Peterlee with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed per annum. The lease came to a finish in 2099. Taking into account 73 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
In 2014 we were contacted by Dr S Collins who, having bought a purpose-built flat in Peterlee in March 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Peterlee with a long lease were in the region of £264,000. The average amount of ground rent was £60 billed quarterly. The lease ended on 21 April 2079. Considering the 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including fees.