Yardley residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Yardley with more than 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 home. In such circumstances there is often little to be gained by purchasing 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. |
| 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. |
| National Westminster Bank | 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Yardley,the lease extension lawyers 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 Yardley valuers.
Jack was the the leasehold proprietor of a conversion flat in Yardley being marketed with a lease of fraction over 61 years outstanding. Jack on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Mrs Jessica Nguyen moved into a purpose-built apartment in Yardley in September 2007. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Yardley with an extended lease were worth £265,200. The mid-range ground rent payable was £65 billed per annum. The lease ended on 1 January 2091. Given that there were 66 years unexpired we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
Last month we were e-mailed by Dr E Fournier , who bought a studio flat in Yardley in February 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar properties in Yardley with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease concluded on 11 September 2080. Given that there were 55 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.