Billingham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Billingham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Billingham you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Billingham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Billingham can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Kai was the the leasehold owner of a studio apartment in Billingham on the market with a lease of a few days over 59 years left. Kai on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were phoned by Mr R Hall who, having completed a recently refurbished apartment in Billingham in July 1996. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Similar premises in Billingham with 100 year plus lease were worth £189,000. The average ground rent payable was £55 billed per annum. The lease end date was on 18 April 2079. Given that there were 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
Mr and Mrs. U Gunderson owned a one bedroom flat in Billingham in August 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative premises in Billingham with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected annually. The lease end date was on 3 April 2099. Considering the 73 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.