The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Billingham can extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Billingham lease extension. Postponing the costs today simply escalates the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Billingham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a 2 bedroom apartment in Billingham being marketed with a lease of a few days over fifty eight years outstanding. Luca on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Luca to invoke his statutory right. Luca obtained expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Last Winter we were e-mailed by Mr U Hernández , who owned a one bedroom apartment in Billingham in October 1997. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable properties in Billingham with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease expired in 2087. Considering the 61 years remaining we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.
Last year we were called by Dr C Ali , who purchased a first floor flat in Billingham in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Billingham with an extended lease were worth £171,800. The average amount of ground rent was £55 collected yearly. The lease came to a finish on 15 February 2076. Given that there were 50 years left we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus fees.