Yarm residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Yarm leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her ground floor flat in Yarm, Rhiannon initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension was concluded in August 2015. The landlord’s costs were kept to an absolute minimum.
In 2009 we were approached by Dr Isobel Hall who, having purchased a first floor flat in Yarm in June 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Yarm with a long lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease elapsed on 14 November 2105. Having 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Dr I Bernard purchased a first floor apartment in Yarm in March 2008. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Yarm with an extended lease were valued around £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 28 February 2094. Considering the 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.