When it comes to domestic leasehold premises in Yeading, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Yeading with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years left, under the current statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Yeading with more than one hundred years remaining 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with undertake Yeading lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Logan, came seriously close to the eighty-year threshold with the lease on his leasehold flat in Yeading. Having purchased his property 19 years previously, the unexpired term was of no importance. Thankfully, he became aware that he needed to take action soon on Extending the lease. Logan extended the lease just under the wire last May. Logan and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If the lease had descended below eighty years, the sum would have become more exhorbitant by at least £925.
Mr M Howard owned a ground floor flat in Yeading in August 2004. The question was if we could estimate the premium could be to extend the lease by ninety years. Similar flats in Yeading with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out in 2095. Considering the 70 years as a residual term we estimated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus fees.
An example of a lease Extension decision for a Yeading property is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case related to 1 flat. The unexpired lease term was 58.19 years.