The closer a domestic lease in Yarm On Tees gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Yarm On Tees will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Yarm On Tees 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
Lender | Requirement |
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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. |
Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
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. |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
Irrespective of whether you are a tenant or a landlord in Yarm On Tees,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yarm On Tees valuers.
Two years ago Omar, came dangerously close to the eighty-year threshold with the lease on his purpose- built apartment in Yarm On Tees. Having purchased his home two decades ago, the unexpired term was of minimal bearing. Thankfully, he realised he needed to take steps soon on a lease extension. Omar was able to extend his lease at the eleventh hour in May. Omar and the freeholder via the management company subsequently agreed on a premium of £6,000 . If the lease had slid below eighty years, the premium would have gone up by a minimum £1,050.
In 2011 we were e-mailed by Mr Alex Fournier who, having took over the lease of a one bedroom apartment in Yarm On Tees in May 1996. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Yarm On Tees with a long lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced yearly. The lease expired on 18 September 2077. Given that there were 53 years remaining we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Last Christmas we were e-mailed by Mr G Robinson , who bought a basement apartment in Yarm On Tees in October 2009. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Yarm On Tees with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 invoiced yearly. The lease ran out on 9 July 2097. Having 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.