It’s a harsh truth that a Peterlee residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Peterlee property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Peterlee will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Peterlee leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Evan was the the leasehold proprietor of a conversion flat in Peterlee being marketed with a lease of a little over sixty years left. Evan informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr Jacob François was assigned a lease of a one bedroom flat in Peterlee in November 2010. The question was if we could approximate the price could be for a ninety year lease extension. Identical properties in Peterlee with an extended lease were valued about £176,200. The average amount of ground rent was £65 billed annually. The lease end date was on 2 January 2082. Given that there were 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including costs.
In 2010 we were called by Mr and Mrs. B Anderson who, having was assigned a lease of a purpose-built flat in Peterlee in April 2008. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Peterlee with an extended lease were in the region of £242,600. The average amount of ground rent was £45 billed quarterly. The lease ended in 2093. Considering the 67 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.