Yarm On Tees leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Yarm On Tees tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Yarm On Tees you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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 |
| Royal Bank of Scotland | 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. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
In 2014 Cameron, came dangerously close to the 80-year threshold with the lease on his ground floor apartment in Yarm On Tees. Having purchased his property two decades ago, the lease term was of no bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Cameron extended the lease just ahead of time in August. Cameron and the freeholder via the managing agents eventually agreed on an amount of £5,500 . If the lease had descended below eighty years, the premium would have increased by at least £1,125.
Mr N Alexander completed a studio flat in Yarm On Tees in July 1995. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Yarm On Tees with a long lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease came to a finish on 20 March 2085. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including costs.
Ms Ellen Khan took over the lease of a one bedroom flat in Yarm On Tees in March 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Yarm On Tees with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2105. Having 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.