It’s an underpublicised certainty that a Bishop Auckland residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Bishop Auckland property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Bishop Auckland will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety 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 |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bishop Auckland can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Bishop Auckland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her one bedroom apartment in Bishop Auckland, Lucy commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction was finalised in January 2011. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were approached by Dr Yasmin Wright who, having owned a ground floor apartment in Bishop Auckland in July 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Bishop Auckland with a long lease were worth £267,600. The average ground rent payable was £65 billed every twelve months. The lease ran out on 11 November 2093. Considering the 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.
In 2011 we were phoned by Mrs Kayleigh Mitchell who, having moved into a ground floor flat in Bishop Auckland in January 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Bishop Auckland with a long lease were valued around £206,200. The average amount of ground rent was £60 collected every twelve months. The lease terminated in 2082. Having 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.