Peterlee leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Peterlee tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Peterlee you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Peterlee flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Peterlee can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 Peterlee lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tyler owned a studio apartment in Peterlee being marketed with a lease of a little over 59 years unexpired. Tyler on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2012 we were e-mailed by Dr O Rodríguez who, having was assigned a lease of a studio flat in Peterlee in February 1995. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Peterlee with a long lease were worth £183,600. The average ground rent payable was £65 collected every twelve months. The lease termination date was on 5 September 2083. Given that there were 57 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Last year we were contacted by Mr and Mrs. A Thompson , who acquired a recently refurbished apartment in Peterlee in August 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical properties in Peterlee with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 collected every twelve months. The lease expiry date was on 27 September 2094. Having 68 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.