Yarm residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Yarm with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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. |
Lease extensions in Yarm can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Yarm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Aaron, started to get close to the eighty-year threshold with the lease on his garden flat in Yarm. Having bought his home two decades ago, the length of the lease was of no relevance. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Aaron was able to extend his lease just under the wire last April. Aaron and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,025.
Mr and Mrs. V Bennett purchased a recently refurbished flat in Yarm in April 2000. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Yarm with 100 year plus lease were valued around £260,200. The average ground rent payable was £65 billed every twelve months. The lease ended in 2090. Considering the 66 years left we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus fees.
In 2009 we were approached by Mr and Mrs. E Ramírez who, having completed a basement apartment in Yarm in November 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Yarm with a long lease were in the region of £198,800. The average ground rent payable was £55 collected quarterly. The lease end date was in 2079. Taking into account 55 years as a residual term we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of fees.