Bishop Auckland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Bishop Auckland tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Bishop Auckland you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Bishop Auckland flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Bishop Auckland with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Bishop Auckland,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 in-depth market knowledge and the close ties they enjoy with Bishop Auckland valuers.
Following protracted discussions with the freeholder of her studio flat in Bishop Auckland, Rachel started the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was concluded in April 2007. The landlord’s charges were negotiated to a tad over 600 pounds.
Mr and Mrs. J Watson completed a recently refurbished apartment in Bishop Auckland in April 2008. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar homes in Bishop Auckland with a long lease were in the region of £295,000. The average ground rent payable was £45 billed every twelve months. The lease terminated in 2099. Having 74 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Last month we were called by Mr and Mrs. T Stewart , who completed a ground floor apartment in Bishop Auckland in January 2000. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar homes in Bishop Auckland with a long lease were worth £243,000. The average amount of ground rent was £65 billed monthly. The lease terminated on 3 November 2088. Considering the 63 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of expenses.