Billingham leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Billingham will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Billingham with over 100 years left 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
The lawyers that we work with undertake Billingham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Twenty four months ago Jayden, came precariously near to the 80-year threshold with the lease on his basement apartment in Billingham. Having purchased his home two decades ago, the lease term was of minimal concern. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jayden was able to extend his lease at the eleventh hour in August. Jayden and the freeholder via the management company eventually settled on the final figure of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,025.
Last Christmas we were contacted by Ms Lydia González , who owned a one bedroom apartment in Billingham in January 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable properties in Billingham with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 invoiced yearly. The lease finished on 14 March 2090. Given that there were 64 years left we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including expenses.
Mr Reuben Bell was assigned a lease of a first floor flat in Billingham in July 2002. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar premises in Billingham with an extended lease were valued around £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease ended on 24 February 2079. Considering the 53 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.