When it comes to long leasehold property in Peterlee, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Anyone in Peterlee with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has below eighty years left, under the relevant legislation the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Peterlee can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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.
Off the back of protracted correspondence with the freeholder of her leasehold flat in Peterlee, Imogen initiated the lease extension process as the 80 year mark was quickly coming. The transaction was finalised in July 2015. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were approach by Dr R Díaz , who moved into a basement apartment in Peterlee in April 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical residencies in Peterlee with an extended lease were worth £264,000. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2079. Having 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.
In 2009 we were approached by Mr and Mrs. R Anderson who, having purchased a studio apartment in Peterlee in October 2009. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical homes in Peterlee with an extended lease were valued about £225,400. The mid-range amount of ground rent was £45 invoiced annually. The lease lapsed in 2090. Having 64 years left we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus legals.