Why you should start your Durham lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to start your Durham lease extension today:
</h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/durham">Durham</a> property value </h4>
<p>
Durham residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
<h4>Durham property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
<h4>Banks and Building Societies will not grant a mortgage on a short lease</h4> Nearly all mortgage lenders will not grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this will result in your Durham property becoming difficult to sell or to obtain finance on. <p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
</tr>
<tr>
<td>Chelsea Building Society</td>
<td> 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.
</tr>
<tr>
<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
<tr>
<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Durham lease extension solicitors or enfranchisement solicitors
</h4>
<p> Regardless of whether you are a tenant or a freeholder in Durham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Durham valuers.
<h4>
Durham Lease Extension Example Cases:
</h4>
<h5> Francesca, Durham, County Durham,</h5>
<p> Following unsuccessful discussions with the landlord of her two bedroom flat in Durham, Francesca commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The legal work was concluded in September 2013. The freeholder’s costs were kept to an absolute minimum.
<h5>Durham case:</h5>
<p>
Last Summer we were e-mailed by Dr T Martin , who
moved into a ground floor flat in Durham in April 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in Durham with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected monthly. The lease expired in 2078. Having 52 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.
<h5>Durham case:</h5>
<p>
In 2010 we were called by Ms A Sánchez who, having bought a basement apartment in Durham in July 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Durham with a long lease were worth £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out in 2089. Considering the 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.
</div>