Yate leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Yate will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Yate with over 100 years unexpired 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Yate can be a difficult process. We recommend you get 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 in-depth market knowledge procuring Yate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her basement flat in Yate, Caitlin commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction completed in September 2011. The landlord’s fees were kept to an absolute minimum.
Dr M Leroy purchased a basement apartment in Yate in February 1997. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar properties in Yate with an extended lease were valued about £275,000. The mid-range ground rent payable was £65 billed yearly. The lease elapsed on 6 May 2094. Having 68 years outstanding we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
Last Winter we were e-mailed by Dr Leah Thomas , who bought a first floor apartment in Yate in July 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Yate with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 collected per annum. The lease ended in 2083. Considering the 57 years left we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.