Unfortunately that a Yardley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Yardley property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. Most flat owners in Yardley will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Yardley can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Yardley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan was the the leasehold owner of a 2 bedroom flat in Yardley being marketed with a lease of fraction over 61 years outstanding. Logan on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2010 we were contacted by Mr M Mason who, having owned a one bedroom apartment in Yardley in April 2004. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Yardley with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 collected quarterly. The lease ended in 2079. Taking into account 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 not including costs.
Last Summer we were phoned by Mr and Mrs. L Garcia , who owned a garden flat in Yardley in March 2000. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical homes in Yardley with a long lease were valued about £295,000. The average ground rent payable was £45 invoiced annually. The lease ran out on 16 November 2099. Given that there were 74 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.