Billingham leases on residential deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Billingham will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
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.
Adam was the the leasehold proprietor of a conversion apartment in Billingham on the market with a lease of a few days over fifty eight years unexpired. Adam on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Last Christmas we were called by Dr Aaron Thomas , who moved into a ground floor apartment in Billingham in June 2007. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative properties in Billingham with an extended lease were valued about £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 12 February 2095. Having 70 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Mr and Mrs. A Watson took over the lease of a basement flat in Billingham in September 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Billingham with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 invoiced monthly. The lease terminated in 2084. Considering the 59 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.