When it comes to residential leasehold premises in Yarm On Tees, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Yarm On Tees with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has below eighty years left, under the current Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Yarm On Tees with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Yarm On Tees leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold owner of a studio flat in Yarm On Tees being sold with a lease of just over 72 years left. Ben informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were contacted by Dr Ethan Collins who, having moved into a first floor flat in Yarm On Tees in March 2010. The question was if we could approximate the price would be to extend the lease by a further 90 years. Identical homes in Yarm On Tees with 100 year plus lease were valued around £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease end date was in 2081. Taking into account 55 years remaining we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Last October we were phoned by Mrs Emily Watson , who acquired a first floor apartment in Yarm On Tees in June 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Yarm On Tees with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease finished on 11 August 2101. Having 75 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.