The re-sale value of a leasehold property in Yate depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded well before the eighty year cut off point. Statute entitles Yate qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Yate can be a difficult process. We recommend you obtain 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.
During the course of the last few months Eliot, started to get close to the eighty-year mark with the lease on his leasehold flat in Yate. In buying his property 19 years ago, the length of the lease was of minimal concern. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Eliot extended the lease just ahead of time last July. Eliot and the freeholder eventually agreed on a premium of £6,000 . If he not met the deadline, the sum would have gone up by at least £900.
In 2013 we were phoned by Dr T Walker who, having purchased a ground floor flat in Yate in April 2004. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Yate with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish in 2106. Taking into account 80 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Last May we were contacted by Mr D Flores , who was assigned a lease of a recently refurbished apartment in Yate in March 1997. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar flats in Yate with an extended lease were in the region of £275,000. The average ground rent payable was £45 billed every twelve months. The lease end date was in 2095. Given that there were 69 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.