With a long leasehold premises in Peterlee, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Leasehold owners in Peterlee with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once the lease term has under 80 years outstanding, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Peterlee with more than one hundred years unexpired on the lease are often 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Peterlee can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
Following lengthy negotiations with the landlord of her ground floor apartment in Peterlee, Charlotte commenced the lease extension process as the 80 year mark was fast advancing. The legal work was finalised in February 2013. The freeholder’s costs were kept to an absolute minimum.
Last month we were called by Dr Mason Moore , who bought a one bedroom apartment in Peterlee in February 1995. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Peterlee with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed on 22 October 2100. Taking into account 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2013 we were e-mailed by Mr N Moreau who, having bought a purpose-built flat in Peterlee in March 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Peterlee with a long lease were valued around £173,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished on 9 May 2080. Taking into account 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.