The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Birtley may extend the lease for a further ninety years under statute. Do think carefully before delaying your Birtley lease extension. Postponing the costs today simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold premises in Birtley with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
Regardless of whether you are a tenant or a freeholder in Birtley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Birtley valuers.
Half a year ago Henry, came dangerously close to the 80-year threshold with the lease on his basement apartment in Birtley. In buying his property 19 years previously, the length of the lease was of no relevance. by good luck, he realised he needed to take action soon on Extending the lease. Henry extended the lease at the eleventh hour in March. Henry and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If he not met the deadline, the sum would have become more costly by a minimum £900.
Mr W Carter was assigned a lease of a one bedroom flat in Birtley in January 2007. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical homes in Birtley with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated in 2105. Taking into account 80 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last Spring we were phoned by Dr R Hall , who was assigned a lease of a first floor flat in Birtley in September 2006. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Birtley with an extended lease were worth £275,000. The average amount of ground rent was £45 invoiced monthly. The lease ended on 24 June 2094. Given that there were 69 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.