Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bishop Auckland. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Bishop Auckland have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Please give careful attention before delaying your Bishop Auckland lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Bishop Auckland,the lease extension experts 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 Bishop Auckland valuers.
Nathaniel was the the leasehold owner of a conversion apartment in Bishop Auckland being marketed with a lease of just over fifty eight years remaining. Nathaniel informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Dr P Adams acquired a first floor flat in Bishop Auckland in October 2012. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar residencies in Bishop Auckland with 100 year plus lease were valued around £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed in 2079. Considering the 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Last year we were approach by Mrs Phoebe Williams , who completed a purpose-built flat in Bishop Auckland in July 2005. The question was if we could approximate the price would be to prolong the lease by 90 years. Similar properties in Bishop Auckland with a long lease were worth £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 1 March 2099. Given that there were 73 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.