The closer a domestic lease in Bishop Auckland nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Bishop Auckland will qualify for this right; nevertheless a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Bishop Auckland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Aaron was the the leasehold proprietor of a studio apartment in Bishop Auckland being sold with a lease of fraction over 72 years left. Aaron informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2012 we were phoned by Dr E Lefebvre who, having took over the lease of a one bedroom apartment in Bishop Auckland in October 2009. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable residencies in Bishop Auckland with an extended lease were worth £198,800. The average ground rent payable was £55 collected monthly. The lease elapsed on 14 July 2080. Given that there were 55 years unexpired we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
Last Spring we were approach by Mr and Mrs. A Rose , who moved into a first floor flat in Bishop Auckland in March 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable homes in Bishop Auckland with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected monthly. The lease came to a finish on 8 February 2100. Having 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.