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Main reasons to start your Peterlee lease extension

Why you should start your Peterlee lease extension today:

A Peterlee lease depreciates with the years remaining on the lease.

When it comes to long leasehold premises in Peterlee, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Peterlee with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has below 80 years outstanding, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not issue a mortgage with a short lease

Most mortgage companies require a lengthy amount of time remaining on any leasehold property before they will consider providing a mortgage on it. Regardless of whether you need a mortgage, you should bear in mind that it is likely that someone intending to acquire your property in the future might well do, so if they can't secure a mortgage, then the market price of the property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

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.
Coventry Building Society 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.

What makes us experts in Peterlee lease extensions?

Irrespective of whether you are a tenant or a landlord in Peterlee,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peterlee valuers.

Peterlee Lease Extension Example Cases:

John, Peterlee, County Durham,

John was the the leasehold proprietor of a studio apartment in Peterlee being sold with a lease of a few days over 72 years unexpired. John informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.

Peterlee case:

Mr Ryan Hernández was assigned a lease of a purpose-built flat in Peterlee in September 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Peterlee with a long lease were valued around £260,000. The average ground rent payable was £50 collected quarterly. The lease ended on 12 April 2095. Taking into account 72 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.

Peterlee case:

In 2009 we were e-mailed by Mrs W Robinson who, having completed a one bedroom flat in Peterlee in June 1999. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable properties in Peterlee with an extended lease were valued about £261,600. The mid-range amount of ground rent was £60 collected yearly. The lease concluded in 2075. Given that there were 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including fees.