When it comes to residential leasehold property in Yarm On Tees, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Yarm On Tees with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has below eighty years outstanding, under the current Act the landlord is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Yarm On Tees leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her one bedroom apartment in Yarm On Tees, Grace started the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in August 2006. The landlord’s charges were kept to an absolute minimum.
Mr Ethan Morris was assigned a lease of a first floor apartment in Yarm On Tees in July 1997. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar premises in Yarm On Tees with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease concluded on 3 February 2095. Taking into account 70 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2014 we were phoned by Mr V Roux who, having took over the lease of a studio flat in Yarm On Tees in February 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Yarm On Tees with 100 year plus lease were valued about £223,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expired on 16 July 2084. Given that there were 59 years remaining we approximated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including expenses.