Consett Lease Extension - Free Consultation

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Why you should commence your Consett lease extension

Top reasons for lease extension now:

Increase your lease and increase your Consett property value

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Consett may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Consett lease extension. Shelving the costs today simply escalates the premium you will ultimately be required to pay to extend the lease.

Consett property with a lease extension is almost the same value as a freehold

Leasehold properties in Consett with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to issue a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Consett lease extension solicitors or enfranchisement solicitors

The lawyers 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.

Consett Lease Extension Example Cases:

Stanley, Consett, County Durham

Last Autumn Stanley, started to get close to the eighty-year threshold with the lease on his garden flat in Consett. In buying his flat 19 years ago, the lease term was of little bearing. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Stanley arranged for a lease extension just in the nick of time in July. Stanley and the landlord in the end settled on a premium of £6,000 . If he had missed the deadline, the premium would have become more costly by at least £875.

Consett case:

Dr Archie Michel took over the lease of a purpose-built flat in Consett in January 2000. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative homes in Consett with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 collected monthly. The lease lapsed on 12 February 2083. Considering the 60 years as a residual term we calculated the premium to the landlord to extend the lease to be within £25,700 and £29,600 plus legals.

Consett case:

In 2010 we were e-mailed by Mr and Mrs. Y Michel who, having purchased a first floor apartment in Consett in August 2006. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical homes in Consett with a long lease were valued around £210,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2103. Given that there were 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.