The market value of a leasehold property in Rawdon and Yeadon is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed well before the 80 year threshold. Current legislation enables Rawdon and Yeadon qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Rawdon and Yeadon with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Rawdon and Yeadon 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 conveyancer we work with provide it.
After protracted discussions with the freeholder of her studio flat in Rawdon and Yeadon, Abigail started the lease extension process as the eighty year deadline was quickly nearing. The lease extension was concluded in August 2015. The landlord’s costs were restricted to about 500 GBP.
Mr and Mrs. S White completed a ground floor flat in Rawdon and Yeadon in April 2001. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Rawdon and Yeadon with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out in 2091. Having 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 plus professional charges.
Dr Kayleigh Young took over the lease of a one bedroom apartment in Rawdon and Yeadon in January 2003. We are asked if we could approximate the price would be for a ninety year lease extension. Similar homes in Rawdon and Yeadon with an extended lease were valued about £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease ended on 23 June 2080. Taking into account 55 years left we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including legals.