The market value of Yardley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years
Leasehold residencies in Yardley with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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.
Following lengthy correspondence with the landlord of her garden flat in Yardley, Jodie commenced the lease extension process as the eighty year mark was fast nearing. The lease extension completed in July 2008. The freeholder’s fees were kept to an absolute minimum.
Mr I Taylor completed a garden flat in Yardley in May 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar premises in Yardley with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 9 January 2078. Having 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.
Last Summer we were called by Mr G David , who was assigned a lease of a basement apartment in Yardley in June 2007. The question was if we could estimate the price would be to extend the lease by ninety years. Identical premises in Yardley with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expired in 2098. Having 72 years left we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus expenses.