Why you should commence your Yarm lease extension

Why you should start your Yarm lease extension today:

Increase your lease and increase your Yarm property value

Yarm leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Yarm enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Yarm you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Yarm with in excess of one hundred years outstanding on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Mortgage companies do not like short residential leases. You are likely to encounter difficulties if you want to sell your flat in Yarm if the remaining term of your lease is less than the criteria set by most lenders. Different lenders have different requirements but generally they are looking for a minimum remaining lease term of seventy years.

What makes us experts in Yarm lease extensions?

Irrespective of whether you are a tenant or a landlord in Yarm,the lease extension experts that we work with will always be prepared 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.

Yarm Lease Extension Example Cases:

Eli, Yarm, County Durham,

Eli owned a studio flat in Yarm being sold with a lease of just over 59 years unexpired. Eli on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.

Yarm case:

Last Spring we were contacted by Mr Felix Howard , who purchased a newly refurbished flat in Yarm in March 1997. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Yarm with an extended lease were worth £290,000. The average amount of ground rent was £45 billed monthly. The lease lapsed on 24 September 2098. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including costs.

Yarm case:

Dr Amy Petit was assigned a lease of a basement apartment in Yarm in June 2003. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparable properties in Yarm with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 25 September 2087. Given that there were 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.