Peterlee leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Peterlee will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Peterlee 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the landlord of her first floor apartment in Peterlee, Emma started the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction was concluded in November 2011. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were called by Ms T Mason , who was assigned a lease of a basement flat in Peterlee in February 1996. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable residencies in Peterlee with a long lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease ended in 2094. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Mr Callum Alexander acquired a newly refurbished apartment in Peterlee in September 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Peterlee with an extended lease were valued about £246,800. The average amount of ground rent was £60 collected quarterly. The lease ran out on 2 September 2074. Given that there were 50 years outstanding we calculated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including fees.