Billingham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Billingham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Billingham you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a Billingham leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Billingham can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 dealing with Billingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake owned a studio flat in Billingham on the market with a lease of a few days over sixty years left. Jake informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Dr Louise White bought a studio apartment in Billingham in February 2009. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative homes in Billingham with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished in 2098. Considering the 72 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Dr B Collins owned a studio apartment in Billingham in July 2012. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Billingham with a long lease were worth £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease finished in 2087. Considering the 61 years unexpired we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.