There is no doubt about it a leasehold flat or house in Durham is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 100 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 less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Durham will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Durham with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| 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. |
| 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. |
Lease extensions in Durham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Durham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold owner of a conversion flat in Durham being sold with a lease of fraction over 72 years remaining. Isaac informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Ms I Martínez acquired a ground floor flat in Durham in November 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Durham with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease termination date was on 10 May 2077. Having 51 years remaining we estimated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus fees.
Dr P Brown purchased a one bedroom apartment in Durham in August 2002. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparative flats in Durham with an extended lease were valued around £210,600. The average ground rent payable was £45 invoiced per annum. The lease elapsed in 2088. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.