The market value of a leasehold property in Billingham depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year threshold. Statute entitles Billingham qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Billingham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her two bedroom apartment in Billingham, Paige started the lease extension process as the 80 year mark was quickly approaching. The legal work was finalised in May 2015. The freeholder’s costs were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. R Cox , who bought a purpose-built apartment in Billingham in November 1999. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical homes in Billingham with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 billed quarterly. The lease came to a finish on 14 April 2082. Considering the 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
Last Summer we were phoned by Mr and Mrs. U Mason , who bought a newly refurbished flat in Billingham in November 2009. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Billingham with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease termination date was in 2102. Given that there were 76 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.