On the balance of probabilities where you own a flat in Peterlee you actually own a long leasehold interest over your property
Leasehold properties in Peterlee with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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 conveyancers that we work with procure 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 conveyancer we work with provide it.
In the wake of 6 months of lengthy correspondence with the freeholder of her garden flat in Peterlee, Abigail commenced the lease extension process as the 80 year threshold was swiftly nearing. The legal work completed in August 2012. The landlord’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. R Stewart who, having was assigned a lease of a recently refurbished flat in Peterlee in October 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Peterlee with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was on 1 July 2076. Given that there were 51 years left we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.
Last Christmas we were approach by Dr A Peterson , who moved into a garden flat in Peterlee in May 1999. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar flats in Peterlee with a long lease were in the region of £210,600. The average amount of ground rent was £45 invoiced monthly. The lease ended on 12 March 2087. Given that there were 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.