There is no doubt about it a leasehold property in Durham is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining 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 consider extending without delay. Many flat owners in Durham will qualify for this right; however a conveyancer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Durham can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Durham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph owned a 2 bedroom apartment in Durham on the market with a lease of a little over fifty eight years outstanding. Joseph informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. M Morgan took over the lease of a newly refurbished flat in Durham in May 2003. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Durham with a long lease were in the region of £264,000. The average ground rent payable was £60 invoiced per annum. The lease elapsed in 2078. Given that there were 53 years left we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including professional charges.
Mr and Mrs. S Petit moved into a one bedroom flat in Durham in February 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Durham with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 collected yearly. The lease expired on 25 June 2089. Having 64 years unexpired we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including expenses.