When it comes to long leasehold property in Consett, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Consett with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under eighty years left, under the current Act the freeholder is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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 Consett can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 dealing with Consett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad owned a studio apartment in Consett on the market with a lease of fraction over fifty eight years outstanding. Muhammad informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mrs J Lambert took over the lease of a ground floor flat in Consett in August 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Similar properties in Consett with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease elapsed in 2080. Considering the 55 years unexpired we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
Last year we were called by Mr and Mrs. B Carter , who took over the lease of a ground floor apartment in Consett in August 1999. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable properties in Consett with an extended lease were valued about £295,000. The average ground rent payable was £50 collected yearly. The lease finished in 2100. Given that there were 75 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.