Chances are that where you own a flat in Yarm On Tees you actually own a long leasehold interest over your property
Leasehold properties in Yarm On Tees with more than 100 years unexpired on the lease are sometimes referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Yarm On Tees,the lease extension lawyers 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.
Trailing unsuccessful negotiations with the freeholder of her two bedroom flat in Yarm On Tees, Erin initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The lease extension was concluded in November 2012. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. N Stewart acquired a purpose-built flat in Yarm On Tees in August 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Yarm On Tees with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish in 2091. Considering the 65 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
Ms G Jackson purchased a one bedroom flat in Yarm On Tees in October 2010. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable flats in Yarm On Tees with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 billed annually. The lease elapsed in 2080. Considering the 54 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including costs.