The market value of a leasehold property in Peterlee is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed in advance of the eighty year cut off point. Statute entitles Peterlee qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
Lease extensions in Peterlee can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 Peterlee lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Finn, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Peterlee. In buying his home two decades ago, the length of the lease was of minimal relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Finn arranged for a lease extension just under the wire last July. Finn and the freeholder subsequently settled on the final figure of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £975.
In 2009 we were phoned by Mr and Mrs. C Carter who, having took over the lease of a ground floor flat in Peterlee in May 2011. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Peterlee with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed on 16 September 2105. Given that there were 79 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Mr and Mrs. H Ward bought a newly refurbished flat in Peterlee in June 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Peterlee with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed on 19 September 2085. Considering the 59 years remaining we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.