It’s a harsh truth that a Durham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Durham property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Durham will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Durham with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| Yorkshire Building Society |
Lease extensions in Durham can be a difficult process. We recommend you get professional help from a conveyancer 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.
James was the the leasehold owner of a conversion flat in Durham on the market with a lease of just over 59 years unexpired. James on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were James to invoke his statutory right. James procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last year we were contacted by Mr and Mrs. O Rivera , who moved into a one bedroom apartment in Durham in August 1995. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar properties in Durham with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 billed quarterly. The lease ran out on 20 February 2084. Given that there were 58 years left we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of expenses.
Last Spring we were e-mailed by Mr and Mrs. D Moore , who bought a one bedroom apartment in Durham in September 2007. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar homes in Durham with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 13 May 2095. Considering the 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.