With a domestic leasehold property in Yarmouth, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Yarmouth with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Yarmouth with over one hundred years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Yarmouth leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Daniel owned a 2 bedroom apartment in Yarmouth being sold with a lease of a little over fifty eight years remaining. Daniel on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2010 we were e-mailed by Mrs Rosie Flores who, having owned a basement flat in Yarmouth in August 2002. The question was if we could approximate the premium would be for a 90 year lease extension. Identical residencies in Yarmouth with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2091. Having 65 years remaining we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
Dr Jamie Jackson acquired a recently refurbished apartment in Yarmouth in April 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Yarmouth with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed on 15 February 2080. Taking into account 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including legals.