When it comes to long leasehold premises in Yarmouth, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Yarmouth with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has less than eighty years outstanding, under the current statute the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Yarmouth with over 100 years remaining 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Yarmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Samuel, came dangerously near to the 80-year threshold with the lease on his studio apartment in Yarmouth. In buying his flat 18 years previously, the lease term was of minimal relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Samuel extended the lease just ahead of time last January. Samuel and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If the lease had slid to less than 80 years, the premium would have increased by at least £1,025.
In 2013 we were contacted by Ms M Scott who, having was assigned a lease of a garden apartment in Yarmouth in October 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Yarmouth with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease ended on 16 November 2080. Having 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.
Last Spring we were e-mailed by Mr and Mrs. G Hill , who took over the lease of a ground floor flat in Yarmouth in February 2005. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in Yarmouth with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated in 2100. Given that there were 75 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.