There is no doubt about it a leasehold property in Durham is a wasting asset as a result of the diminishing lease term. If the lease has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 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 main reason why you should consider extending without delay. The majority of flat owners in Durham will qualify for this right; however a conveyancing solicitor can confirm if you qualify 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 residencies in Durham with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Durham can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 dealing with Durham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie was the the leasehold owner of a studio apartment in Durham being sold with a lease of a few days over 61 years unexpired. Freddie informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Autumn we were approach by Mrs U James , who owned a recently refurbished flat in Durham in November 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Durham with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated in 2096. Considering the 70 years remaining we calculated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of fees.
In 2010 we were e-mailed by Dr Caleb Ricardo who, having took over the lease of a basement flat in Durham in November 2005. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable residencies in Durham with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 billed annually. The lease terminated in 2076. Considering the 50 years outstanding we approximated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including fees.