Yardley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Yardley tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Yardley you must investigate if your lease has between 70 and ninety years left. There are good reasons why a Yardley flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Yardley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the freeholder of her leasehold flat in Yardley, Kirsty commenced the lease extension process as the eighty year mark was fast coming. The transaction completed in May 2005. The freeholder’s charges were negotiated to less than six hundred pounds.
Last month we were approach by Ms N Richardson , who bought a one bedroom apartment in Yardley in June 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar residencies in Yardley with 100 year plus lease were valued around £250,400. The mid-range amount of ground rent was £65 billed per annum. The lease ended on 26 April 2090. Taking into account 64 years remaining we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including legals.
In 2012 we were e-mailed by Mr Oliver Rodríguez who, having was assigned a lease of a garden flat in Yardley in January 2005. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative homes in Yardley with 100 year plus lease were valued around £189,000. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 22 November 2079. Considering the 53 years outstanding we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.