Yeading residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in Yeading with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Yeading leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ben, came very near to the 80-year mark with the lease on his studio apartment in Yeading. Having purchased his home two decades ago, the unexpired term was of minimal importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Ben extended the lease at the eleventh hour last January. Ben and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the amount would have become more costly by a minimum £900.
In 2014 we were called by Mrs Maisie Lee who, having took over the lease of a one bedroom flat in Yeading in January 1998. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparable residencies in Yeading with an extended lease were valued about £270,000. The average ground rent payable was £55 billed monthly. The lease came to a finish in 2101. Given that there were 75 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
An example of a lease Extension decision for a Yeading premises is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case affected 1 flat. The unexpired term as at the valuation date was 58.19 years.