Yarm leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Yarm enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Yarm you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Yarm flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Yarm with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank |
The conveyancing solicitors that we work with handle Yarm 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.
Off the back of lengthy discussions with the landlord of her one bedroom apartment in Yarm, Natasha started the lease extension process as the 80 year deadline was quickly approaching. The lease extension was finalised in April 2014. The landlord’s fees were restricted to slightly above 550 pounds.
Mr and Mrs. R González was assigned a lease of a basement apartment in Yarm in November 2010. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Yarm with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed on 7 August 2106. Given that there were 80 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2009 we were approached by Mr and Mrs. Y Harris who, having took over the lease of a one bedroom apartment in Yarm in September 1996. The question was if we could estimate the premium could be for a 90 year lease extension. Similar homes in Yarm with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2095. Given that there were 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.