Consett residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Consett can be a difficult process. We recommend you obtain guidance 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 in-depth market knowledge procuring Consett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Freddie, came perilously near to the eighty-year threshold with the lease on his one bedroom flat in Consett. Having purchased his home two decades ago, the lease term was of little relevance. by good luck, he recognised he needed to take steps soon on Extending the lease. Freddie extended the lease at the eleventh hour last August. Freddie and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £850.
Dr K Davis purchased a ground floor apartment in Consett in January 2008. We are asked if we could estimate the price would be for a 90 year lease extension. Identical residencies in Consett with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired on 4 April 2105. Taking into account 79 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Mr and Mrs. K Khan bought a ground floor flat in Consett in March 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Consett with a long lease were valued around £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 23 September 2094. Having 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.