There is no doubt about it a leasehold property in Yarm is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Most flat owners in Yarm will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of 100 years remaining 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 in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Yarm can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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.
Kyle owned a studio flat in Yarm being marketed with a lease of a little over fifty eight years unexpired. Kyle informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2012 we were called by Dr Robyn Jones who, having was assigned a lease of a garden apartment in Yarm in March 1997. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative properties in Yarm with an extended lease were valued about £285,000. The average amount of ground rent was £45 billed per annum. The lease terminated on 5 February 2097. Having 71 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.
Last month we were e-mailed by Dr Caleb Ward , who owned a studio apartment in Yarm in April 1997. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparable homes in Yarm with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 billed per annum. The lease finished on 27 April 2086. Given that there were 60 years left we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including fees.