With a domestic leasehold premises in Yate, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Yate with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Yate with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander |
Lease extensions in Yate can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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.
Kyle owned a high value apartment in Yate being marketed with a lease of just over 61 years outstanding. Kyle on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Kyle to invoke his statutory right. Kyle 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 Spring we were contacted by Mr T Wright , who completed a purpose-built flat in Yate in July 2003. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative properties in Yate with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2096. Taking into account 70 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Last year we were e-mailed by Mr and Mrs. V Patel , who was assigned a lease of a purpose-built apartment in Yate in July 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative homes in Yate with an extended lease were worth £223,400. The average ground rent payable was £60 invoiced yearly. The lease ended in 2085. Given that there were 59 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.