When it comes to residential leasehold property in Yarm, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Leasehold owners in Yarm with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has fewer than eighty years remaining, under the current legislation the freeholder can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Yarm,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yarm valuers.
In 2014 Finn, started to get near to the 80-year mark with the lease on his two bedroom flat in Yarm. Having bought his property two decades ago, the length of the lease was of minimal importance. Luckily, he recognised he needed to take action soon on Extending the lease. Finn arranged for a lease extension just ahead of time last March. Finn and the landlord who owned the flat above in the end settled on sum of £5,000 . If he had missed the deadline, the price would have gone up by at least £975.
In 2010 we were called by Mr and Mrs. T Richardson who, having was assigned a lease of a recently refurbished flat in Yarm in September 2012. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Yarm with an extended lease were valued about £210,000. The average amount of ground rent was £50 billed annually. The lease concluded in 2105. Taking into account 80 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Dr Charlie Torres completed a garden flat in Yarm in February 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Yarm with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2094. Given that there were 69 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.