Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Yardley. Clearly, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Yardley have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before delaying your Yardley lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Yardley with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Yardley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yardley valuers.
Evan owned a studio flat in Yardley on the market with a lease of a few days over 72 years left. Evan informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. I Vincent acquired a ground floor flat in Yardley in January 2007. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar premises in Yardley with a long lease were valued around £205,000. The average ground rent payable was £50 invoiced yearly. The lease concluded on 2 March 2103. Given that there were 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Mr R Davis purchased a basement apartment in Yardley in February 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Yardley with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 collected per annum. The lease expired on 26 April 2092. Considering the 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus costs.