On the balance of probabilities where you own a flat in Peterlee you actually own a long leasehold interest over your property
Leasehold properties in Peterlee with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Peterlee,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peterlee valuers.
Oscar owned a conversion apartment in Peterlee being sold with a lease of just over 59 years outstanding. Oscar informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension 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. No ground rent would be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were called by Ms Kirsty Adams who, having acquired a purpose-built flat in Peterlee in August 2012. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Peterlee with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 9 July 2099. Having 74 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last Christmas we were called by Mr and Mrs. C Johnson , who completed a basement apartment in Peterlee in January 2006. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical residencies in Peterlee with 100 year plus lease were worth £166,400. The average ground rent payable was £60 collected every twelve months. The lease terminated in 2079. Taking into account 54 years left we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.