The market value of Middlesbrough leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Middlesbrough can be a difficult process. We recommend you get professional help from a conveyancer 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 in-depth market knowledge dealing with Middlesbrough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Cameron, started to get near to the 80-year threshold with the lease on his first floor flat in Middlesbrough. In buying his property two decades ago, the lease term was of minimal relevance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Cameron extended the lease at the eleventh hour last September. Cameron and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had slid to less than eighty years, the premium would have become more exhorbitant by a minimum £1,125.
In 2009 we were phoned by Mr Cameron Wilson who, having moved into a recently refurbished apartment in Middlesbrough in April 2010. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative properties in Middlesbrough with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired on 21 September 2098. Having 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. M Morel bought a basement flat in Middlesbrough in January 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Middlesbrough with an extended lease were worth £240,600. The average ground rent payable was £60 collected every twelve months. The lease came to a finish in 2087. Taking into account 62 years remaining we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.