The closer a residential lease in Consett nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Consett will qualify for this right; however a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Consett with more than one hundred years left on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 lawyers that we work with handle 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 conveyancer we work with provide it.
Sebastian owned a conversion flat in Consett being sold with a lease of fraction over fifty eight years outstanding. Sebastian on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last August we were approach by Mr and Mrs. E Walker , who bought a basement flat in Consett in September 2004. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative premises in Consett with a long lease were valued around £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease concluded in 2076. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
In 2012 we were called by Dr C Miller who, having owned a one bedroom flat in Consett in November 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Consett with an extended lease were valued about £285,000. The average ground rent payable was £45 collected yearly. The lease expired in 2096. Taking into account 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.