For anyone whose Rawdon and Yeadon flat is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Rawdon and Yeadon with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Rawdon and Yeadon leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Austin, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Rawdon and Yeadon. In buying his property twenty years previously, the unexpired term was of minimal interest. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Austin arranged for a lease extension just ahead of time last March. Austin and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had slid below eighty years, the figure would have escalated by a minimum £900.
Dr Oliver Torres owned a garden flat in Rawdon and Yeadon in January 2009. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Rawdon and Yeadon with a long lease were worth £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease ended in 2079. Having 54 years outstanding we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including fees.
Mr and Mrs. N Wilson was assigned a lease of a one bedroom flat in Rawdon and Yeadon in May 2005. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Rawdon and Yeadon with a long lease were valued around £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease termination date was in 2099. Considering the 74 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.