Why you should start your Yardley lease extension

Main reasons to commence your Yardley lease extension today:

A Yardley leasehold property depreciates with the years remaining on the lease.

As the the remaining lease term of a Yardley domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Yardley will qualify for this right; that being said a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Yardley property with a lease extension is almost the same value as a freehold

Leasehold properties in Yardley with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lending institutions will not issue a mortgage with a short lease

Almost all banks and building societies will not grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties to obtain a mortgage and this will result in your Yardley property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Yardley lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Yardley,the lease extension experts 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.

Yardley Lease Extension Case Summaries:

Leon, Yardley, Birmingham,

Leon owned a 2 bedroom flat in Yardley on the market with a lease of a little over 59 years outstanding. Leon informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured satisfactory resolution informally and readily saleable.

Yardley case:

Last Spring we were phoned by Mr Lewis Sánchez , who owned a garden apartment in Yardley in January 2001. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparable properties in Yardley with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected annually. The lease finished on 9 March 2102. Taking into account 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.

Yardley case:

Dr A Smith bought a one bedroom apartment in Yardley in November 2003. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Yardley with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected per annum. The lease ended on 8 September 2091. Having 65 years remaining we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus expenses.