Yaxley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Yaxley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Yaxley you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Yaxley with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Yaxley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her first floor flat in Yaxley, Stephanie started the lease extension process as the 80 year deadline was swiftly approaching. The transaction completed in January 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. S James took over the lease of a purpose-built apartment in Yaxley in September 2012. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparative flats in Yaxley with an extended lease were worth £260,200. The average amount of ground rent was £65 invoiced per annum. The lease elapsed in 2091. Considering the 66 years remaining we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus costs.
In 2009 we were phoned by Dr S Evans who, having completed a one bedroom apartment in Yaxley in July 2002. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Yaxley with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2080. Considering the 55 years left we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of legals.