There is no doubt about it a leasehold property in Bishop Auckland is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Bishop Auckland will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. 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 property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bishop Auckland can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge 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.
14 months ago Sebastian, started to get near to the 80-year threshold with the lease on his leasehold flat in Bishop Auckland. In buying his home two decades ago, the unexpired term was of little concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. Sebastian was able to extend his lease at the eleventh hour in July. Sebastian and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had slipped below eighty years, the price would have gone up by at least £900.
Last Christmas we were contacted by Dr Felix López , who completed a one bedroom apartment in Bishop Auckland in February 2002. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative residencies in Bishop Auckland with a long lease were in the region of £205,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out in 2105. Given that there were 79 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2012 we were called by Ms Isobel Rose who, having bought a newly refurbished apartment in Bishop Auckland in January 2011. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative properties in Bishop Auckland with an extended lease were in the region of £275,000. The average ground rent payable was £65 collected annually. The lease termination date was in 2094. Considering the 68 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.