Yardley leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Yardley will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Yardley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her ground floor apartment in Yardley, Jessica initiated the lease extension process as the 80 year mark was fast coming. The transaction completed in June 2007. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were phoned by Ms Naomi Mitchell , who was assigned a lease of a garden apartment in Yardley in August 2004. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative premises in Yardley with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2085. Considering the 59 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.
Last Spring we were contacted by Dr Caleb Ricardo , who was assigned a lease of a garden apartment in Yardley in September 2011. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Identical premises in Yardley with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated in 2105. Considering the 79 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.