The only way is down when it comes to Birtley lease terms. Birtley flats that have a lease term shorter than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Birtley with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Birtley can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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 Birtley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a conversion apartment in Birtley being marketed with a lease of just over 72 years remaining. Nathan informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr William James bought a purpose-built apartment in Birtley in March 2010. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Birtley with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2092. Taking into account 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 not including expenses.
Last year we were called by Mrs Madeleine Cox , who owned a one bedroom flat in Birtley in June 1998. The question was if we could approximate the price would be for a ninety year lease extension. Identical flats in Birtley with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated in 2081. Taking into account 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.