On the balance of probabilities where you own a flat in Yarm On Tees you actually own a long leasehold interest over your property
Leasehold residencies in Yarm On Tees with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Engaging our service will provide you increased control over the value of your Yarm On Tees leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alfie was the the leasehold proprietor of a 2 bedroom flat in Yarm On Tees on the market with a lease of a little over sixty years left. Alfie informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were contacted by Mr and Mrs. O Lee , who bought a one bedroom apartment in Yarm On Tees in October 2004. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Yarm On Tees with a long lease were in the region of £275,000. The average amount of ground rent was £65 billed quarterly. The lease termination date was on 28 March 2093. Having 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Christmas we were e-mailed by Mr N Williams , who was assigned a lease of a one bedroom flat in Yarm On Tees in August 2009. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable residencies in Yarm On Tees with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 billed quarterly. The lease lapsed on 20 July 2082. Given that there were 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.