Peterlee leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Peterlee will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Lewis owned a 2 bedroom apartment in Peterlee on the market with a lease of a little over 61 years left. Lewis informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Ms W Smith moved into a first floor apartment in Peterlee in September 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Peterlee with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2091. Having 66 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
Last Christmas we were e-mailed by Ms G Bonnet , who moved into a first floor flat in Peterlee in January 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical homes in Peterlee with a long lease were valued around £280,000. The average ground rent payable was £55 invoiced per annum. The lease termination date was in 2102. Considering the 77 years unexpired we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.