Peterlee leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Peterlee residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Peterlee you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Peterlee flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Peterlee with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
After lengthy negotiations with the landlord of her garden apartment in Peterlee, Laura initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in July 2009. The landlord’s charges were kept to an absolute minimum.
In 2012 we were phoned by Dr Jasper Bailey who, having was assigned a lease of a one bedroom flat in Peterlee in May 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Peterlee with 100 year plus lease were valued about £261,600. The average amount of ground rent was £60 collected annually. The lease came to a finish on 21 June 2078. Having 52 years remaining we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including legals.
In 2014 we were phoned by Mr Luke Morgan who, having took over the lease of a one bedroom flat in Peterlee in April 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Peterlee with a long lease were valued around £218,000. The average ground rent payable was £45 invoiced yearly. The lease finished in 2089. Taking into account 63 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of legals.