As the the remaining lease term of a Yardley residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Yardley will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Yardley with more than 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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Yardley,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 in-depth market knowledge and the close ties they enjoy with Yardley valuers.
Subsequent to unsuccessful correspondence with the freeholder of her basement flat in Yardley, Jordan initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The legal work completed in June 2009. The landlord’s fees were kept to an absolute minimum.
Dr W Ricardo completed a garden flat in Yardley in February 1996. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative properties in Yardley with 100 year plus lease were worth £280,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2095. Taking into account 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
Dr E Morel took over the lease of a one bedroom flat in Yardley in June 1999. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable flats in Yardley with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2084. Having 58 years left we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.