When it comes to long leasehold premises in Yate, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Yate with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
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 is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Yate leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Luca, started to get near to the 80-year threshold with the lease on his basement apartment in Yate. In buying his home twenty years previously, the unexpired term was of no relevance. Luckily, he became aware that he would imminently be paying an escalated premium for Extending the lease. Luca arranged for a lease extension just under the wire in September. Luca and the freeholder in the end settled on an amount of £6,000 . If the lease had dipped lower than 80 years, the amount would have escalated by at least £1,025.
In 2012 we were e-mailed by Mrs O Jackson who, having was assigned a lease of a studio apartment in Yate in July 1996. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in Yate with a long lease were worth £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2095. Taking into account 69 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Mrs I Bertrand bought a studio flat in Yate in April 2005. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable premises in Yate with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected quarterly. The lease termination date was on 24 May 2084. Taking into account 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.