When it comes to residential leasehold property in Birtley, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Leasehold owners in Birtley with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Birtley with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Birtley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Austin, started to get close to the 80-year threshold with the lease on his first floor apartment in Birtley. Having bought his home two decades ago, the length of the lease was of no importance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Austin extended the lease just under the wire last January. Austin and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had dropped below 80 years, the premium would have gone up by a minimum £1,050.
Mr and Mrs. B Anderson purchased a one bedroom flat in Birtley in November 2010. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative flats in Birtley with an extended lease were in the region of £233,200. The average ground rent payable was £60 collected every twelve months. The lease expired in 2086. Considering the 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of fees.
Last Winter we were e-mailed by Mrs P Sharif , who completed a one bedroom apartment in Birtley in July 2004. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar homes in Birtley with an extended lease were worth £166,800. The average ground rent payable was £50 billed per annum. The lease elapsed in 2075. Given that there were 50 years left we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus costs.