Billingham leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Billingham will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Billingham with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Theo owned a studio apartment in Billingham on the market with a lease of fraction over fifty eight years remaining. Theo on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Mr and Mrs. I Bennett acquired a first floor apartment in Billingham in September 2005. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Billingham with an extended lease were in the region of £260,200. The average ground rent payable was £65 invoiced quarterly. The lease finished on 23 June 2090. Given that there were 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of expenses.
Last Autumn we were phoned by Dr P Baker , who acquired a ground floor flat in Billingham in June 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical flats in Billingham with 100 year plus lease were worth £198,800. The average ground rent payable was £55 collected every twelve months. The lease expired in 2079. Taking into account 55 years left we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.