The only way is down when it comes to Yarm lease terms. Yarm properties that have a residual term lower than eighty years will de-escalate in market price even faster, and the cost of extending your lease will increase.
Leasehold premises in Yarm with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Yarm can be a difficult process. We recommend you get 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 dealing with Yarm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian owned a 2 bedroom apartment in Yarm on the market with a lease of fraction over fifty eight years unexpired. Sebastian on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Mrs B Patel took over the lease of a purpose-built flat in Yarm in June 1997. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical premises in Yarm with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2099. Having 74 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last month we were phoned by Mr and Mrs. O Ricardo , who purchased a garden flat in Yarm in May 1996. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical homes in Yarm with 100 year plus lease were valued about £243,000. The average amount of ground rent was £65 collected per annum. The lease came to a finish in 2088. Taking into account 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of legals.