Billingham leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher amount will be due. Leasehold owners in Billingham will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Billingham,the lease extension experts 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 Billingham valuers.
Last October George, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Billingham. In buying his property 18 years ago, the length of the lease was of minimal importance. by good luck, he noticed he needed to take action soon on a lease extension. George arranged for a lease extension just under the wire in January. George and the landlord in the end agreed on an amount of £5,500 . If the lease had slipped to less than eighty years, the figure would have escalated by at least £1,025.
Mrs N Martínez took over the lease of a garden apartment in Billingham in September 2004. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Identical residencies in Billingham with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed yearly. The lease termination date was in 2102. Having 76 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. G Young moved into a one bedroom flat in Billingham in October 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Billingham with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed in 2091. Given that there were 65 years unexpired we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.