The re-sale value of a leasehold property in Bishop Auckland depends on how long the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year threshold. Leasehold Reform legislation enables Bishop Auckland qualifying lessees to an additional term of 90 years on top of the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Bishop Auckland with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland |
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 conveyancing solicitor we work with provide it.
Adam was the the leasehold proprietor of a 2 bedroom flat in Bishop Auckland on the market with a lease of just over sixty years remaining. Adam on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Mr and Mrs. Y Hall bought a first floor flat in Bishop Auckland in August 2006. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable flats in Bishop Auckland with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease finished on 26 February 2098. Having 72 years left we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including fees.
Last Winter we were phoned by Ms Gemma Nelson , who took over the lease of a purpose-built flat in Bishop Auckland in July 2007. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Bishop Auckland with an extended lease were valued around £233,200. The average amount of ground rent was £60 collected every twelve months. The lease concluded on 10 July 2087. Considering the 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus legals.