Yarm On Tees leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Yarm On Tees will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Yarm On Tees can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Yarm On Tees lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year George, started to get close to the 80-year threshold with the lease on his basement apartment in Yarm On Tees. In buying his home 18 years ago, the length of the lease was of little relevance. Luckily, he realised he needed to take steps soon on Extending the lease. George was able to extend his lease at the eleventh hour in March. George and the landlord eventually settled on an amount of £6,000 . If the lease had dropped lower than eighty years, the price would have escalated by at least £1,125.
In 2011 we were phoned by Mr and Mrs. H Baker who, having acquired a studio apartment in Yarm On Tees in September 1998. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar properties in Yarm On Tees with an extended lease were worth £174,200. The average ground rent payable was £55 billed every twelve months. The lease terminated on 11 May 2077. Having 51 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last Autumn we were e-mailed by Dr P Mason , who took over the lease of a one bedroom apartment in Yarm On Tees in February 2002. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative properties in Yarm On Tees with a long lease were worth £285,000. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2097. Having 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.