As the the remaining lease term of a Bishop Auckland residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Bishop Auckland will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Bishop Auckland with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
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.
Leo owned a 2 bedroom apartment in Bishop Auckland on the market with a lease of just over 59 years outstanding. Leo informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were contacted by Mr Cameron Lewis who, having purchased a garden apartment in Bishop Auckland in September 1996. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable properties in Bishop Auckland with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease ended in 2094. Having 68 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Last year we were e-mailed by Mr and Mrs. P Rivera , who took over the lease of a newly refurbished apartment in Bishop Auckland in April 2002. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical premises in Bishop Auckland with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 5 April 2083. Considering the 57 years remaining we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.