With a residential leasehold property in Consett, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Consett with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than 80 years remaining, under the current statute the freeholder can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Consett with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Consett 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.
Off the back of lengthy negotiations with the landlord of her two bedroom apartment in Consett, Freya initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work was finalised in September 2006. The freeholder’s fees were kept to an absolute minimum.
Mr Ibrahim Díaz owned a one bedroom flat in Consett in May 2008. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Consett with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired in 2103. Given that there were 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. M Flores bought a garden apartment in Consett in October 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Consett with a long lease were worth £260,200. The mid-range ground rent payable was £65 collected monthly. The lease elapsed on 19 February 2092. Considering the 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of costs.