The market value of Rawdon and Yeadon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Rawdon and Yeadon,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rawdon and Yeadon valuers.
Caleb was the the leasehold owner of a studio apartment in Rawdon and Yeadon being sold with a lease of a few days over sixty years unexpired. Caleb informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last year we were approach by Dr P Michel , who acquired a one bedroom apartment in Rawdon and Yeadon in May 2000. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Rawdon and Yeadon with an extended lease were valued about £218,400. The mid-range amount of ground rent was £60 collected annually. The lease terminated in 2085. Given that there were 59 years outstanding we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.
Dr H Scott was assigned a lease of a purpose-built flat in Rawdon and Yeadon in February 1999. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Rawdon and Yeadon with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out in 2105. Considering the 79 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £7,600 and £8,800 plus fees.