As the length of the unexpired term of a Birtley residential lease diminished so does its value and therefore the value of your property. If the lease has, over one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Birtley will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Birtley leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jude, came critically close to the eighty-year mark with the lease on his studio apartment in Birtley. In buying his flat 19 years previously, the unexpired term was of minimal interest. Luckily, he realised he needed to take steps soon on a lease extension. Jude was able to extend his lease at the eleventh hour last March. Jude and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by at least £850.
Last Summer we were phoned by Mr Nathan Flores , who took over the lease of a purpose-built apartment in Birtley in April 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative residencies in Birtley with a long lease were worth £270,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease termination date was in 2093. Taking into account 68 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
In 2009 we were called by Ms D García who, having moved into a ground floor apartment in Birtley in August 2008. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative properties in Birtley with a long lease were valued around £208,600. The mid-range ground rent payable was £60 billed per annum. The lease ran out in 2082. Taking into account 57 years left we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.