Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Yarm. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Yarm have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. You should give careful consideration before putting off your Yarm lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Yarm leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her leasehold apartment in Yarm, Ashleigh initiated the lease extension process as the eighty year mark was rapidly nearing. The transaction was concluded in March 2008. The landlord’s charges were kept to an absolute minimum.
Dr Daniel Garcia completed a garden apartment in Yarm in June 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical homes in Yarm with an extended lease were in the region of £174,200. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish on 22 April 2076. Given that there were 51 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
Mr Y Harris owned a recently refurbished apartment in Yarm in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Yarm with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 billed annually. The lease elapsed in 2096. Having 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.