The value of Yarmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in Yarmouth can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 Yarmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her one bedroom apartment in Yarmouth, Laura started the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was concluded in August 2014. The freeholder’s costs were kept to an absolute minimum.
Last April we were e-mailed by Mr and Mrs. U Kelly , who completed a recently refurbished flat in Yarmouth in May 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Yarmouth with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease came to a finish on 13 July 2105. Considering the 79 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Last year we were called by Mr and Mrs. R Murphy , who purchased a ground floor flat in Yarmouth in March 2001. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar properties in Yarmouth with an extended lease were worth £275,000. The average amount of ground rent was £65 invoiced annually. The lease finished on 12 January 2094. Considering the 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.