As the the remaining lease term of a Middlesbrough domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Middlesbrough will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Middlesbrough with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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; |
| Chelsea 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. |
| 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. |
The conveyancing solicitors that we work with procure Middlesbrough 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.
In recent months Caleb, started to get close to the eighty-year mark with the lease on his two bedroom flat in Middlesbrough. Having bought his flat two decades ago, the unexpired term was of minimal bearing. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Caleb arranged for a lease extension just in the nick of time in January. Caleb and the landlord ultimately settled on sum of £5,000 . If he failed to meet the deadline, the figure would have gone up by at least £900.
Mrs A Bertrand bought a one bedroom flat in Middlesbrough in January 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Middlesbrough with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expiry date was in 2101. Considering the 76 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Last October we were phoned by Mr Harry López , who completed a studio apartment in Middlesbrough in June 2001. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Similar residencies in Middlesbrough with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2090. Taking into account 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus fees.