The closer a residential 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 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Yarm On Tees will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Yarm On Tees with in excess of 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
The conveyancing solicitors that we work with procure Yarm On Tees lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After lengthy negotiations with the landlord of her ground floor apartment in Yarm On Tees, Bethany started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in June 2005. The freeholder’s costs were negotiated to under 700 GBP.
In 2012 we were contacted by Dr Katie Vincent who, having purchased a garden flat in Yarm On Tees in August 1999. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical homes in Yarm On Tees with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease termination date was in 2106. Taking into account 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2009 we were called by Mr and Mrs. E Richardson who, having moved into a garden apartment in Yarm On Tees in April 2007. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Yarm On Tees with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed yearly. The lease finished on 8 September 2095. Taking into account 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.