The re-sale value of a leasehold property in Yate is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year threshold. Leasehold Reform legislation entitles Yate qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Yate with in excess of 100 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Yate can be a difficult process. We recommend you secure professional help from a lawyer 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 dealing with Yate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her basement apartment in Yate, Harriet started the lease extension process as the 80 year deadline was rapidly nearing. The transaction was finalised in November 2012. The freeholder’s charges were negotiated to about 500 GBP.
Last Spring we were approach by Ms Mollie Rivera , who was assigned a lease of a one bedroom apartment in Yate in February 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Yate with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed in 2096. Given that there were 71 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
In 2009 we were called by Dr L Phillips who, having was assigned a lease of a newly refurbished flat in Yate in November 1998. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative residencies in Yate with a long lease were valued about £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out on 27 June 2085. Having 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including professional charges.