There is no doubt about it a leasehold property in Consett is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Consett will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Consett,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Consett valuers.
In 2014 Lewis, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Consett. Having bought his property 18 years previously, the unexpired term was of minimal interest. by good luck, he realised he needed to take steps soon on a lease extension. Lewis arranged for a lease extension at the eleventh hour last June. Lewis and the freeholder eventually settled on an amount of £5,500 . If the lease had dropped to less than eighty years, the premium would have increased by a minimum £1,100.
In 2009 we were called by Dr Zoe Lefebvre who, having was assigned a lease of a one bedroom flat in Consett in October 2009. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Consett with an extended lease were worth £206,200. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish on 14 March 2082. Given that there were 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
In 2011 we were approached by Dr K Rodríguez who, having moved into a one bedroom apartment in Consett in January 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Consett with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded in 2102. Given that there were 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.