The closer a residential lease in Shotley Bridge nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Shotley Bridge will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with handle Shotley Bridge 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 9 months of protracted correspondence with the freeholder of her two bedroom flat in Shotley Bridge, Molly started the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was concluded in April 2006. The freeholder’s charges were negotiated to slightly above six hundred pounds.
Dr T Ward acquired a one bedroom flat in Shotley Bridge in March 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Shotley Bridge with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease termination date was on 28 July 2099. Having 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
In 2013 we were called by Mr and Mrs. Y Campbell who, having moved into a first floor flat in Shotley Bridge in January 2004. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Shotley Bridge with a long lease were valued around £264,000. The average ground rent payable was £60 collected quarterly. The lease concluded in 2079. Given that there were 53 years left we estimated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 plus expenses.