There is no doubt about it a leasehold property in Peterlee is a wasting asset as a result of the shortening lease. If the lease has, over 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Peterlee will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Peterlee can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Peterlee lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hunter owned a high value apartment in Peterlee being sold with a lease of just over 61 years remaining. Hunter informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last Christmas we were phoned by Mr T Johnson , who was assigned a lease of a recently refurbished apartment in Peterlee in September 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Peterlee with 100 year plus lease were valued around £210,600. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 14 March 2087. Considering the 62 years left we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.
Last March we were approach by Ms Y Bonnet , who bought a basement flat in Peterlee in February 2008. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical properties in Peterlee with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired on 19 May 2098. Having 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.