The closer a domestic lease in Peterlee nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Peterlee will qualify for this right; nevertheless a lawyer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Peterlee with over 100 years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Peterlee,the lease extension solicitors 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.
Owen was the the leasehold owner of a high value flat in Peterlee on the market with a lease of just over 72 years outstanding. Owen informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr D Moore owned a garden flat in Peterlee in April 1998. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Peterlee with an extended lease were worth £173,800. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out on 18 October 2080. Having 55 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.
Dr Chelsea Garcia took over the lease of a basement flat in Peterlee in August 2004. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical flats in Peterlee with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2091. Given that there were 66 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.