For those whose Billingham property is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Billingham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Billingham valuers.
Adam owned a studio flat in Billingham on the market with a lease of a few days over 72 years unexpired. Adam on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert legal guidance and secured satisfactory deal informally and sell the property.
In 2011 we were e-mailed by Mr and Mrs. N David who, having took over the lease of a purpose-built flat in Billingham in September 1997. The question was if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Billingham with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed annually. The lease expired on 9 August 2105. Having 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Last year we were contacted by Mrs Yasmin Parker , who moved into a one bedroom apartment in Billingham in January 1998. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Billingham with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated in 2094. Having 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.