With a domestic leasehold premises in Birtley, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Birtley with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has under 80 years outstanding, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Lease extensions in Birtley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Birtley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry was the the leasehold owner of a 2 bedroom apartment in Birtley on the market with a lease of just over 61 years outstanding. Harry informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mrs Rachel Robinson was assigned a lease of a basement flat in Birtley in October 2002. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparative premises in Birtley with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 collected annually. The lease finished in 2104. Considering the 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last month we were called by Dr Austin Gray , who was assigned a lease of a one bedroom flat in Birtley in June 1996. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Birtley with a long lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ended in 2093. Having 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus professional charges.