With a long leasehold premises in Yarm On Tees, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Yarm On Tees with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has below eighty years remaining, under the relevant legislation the freeholder can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
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.
In the wake of 9 months of protracted correspondence with the landlord of her garden apartment in Yarm On Tees, Mollie commenced the lease extension process as the 80 year mark was quickly advancing. The legal work was concluded in October 2009. The freeholder’s costs were kept to an absolute minimum.
Ms F Walker acquired a purpose-built flat in Yarm On Tees in April 2012. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar premises in Yarm On Tees with an extended lease were worth £250,400. The average amount of ground rent was £65 billed monthly. The lease end date was on 9 April 2089. Given that there were 64 years as a residual term we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus fees.
Last Winter we were called by Mrs D Morgan , who owned a newly refurbished flat in Yarm On Tees in July 2003. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Yarm On Tees with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out on 13 June 2078. Taking into account 53 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.