Yarmouth leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Yarmouth will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Yarmouth with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Yarmouth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael owned a conversion flat in Yarmouth being sold with a lease of fraction over 61 years remaining. Michael on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Summer we were contacted by Mr and Mrs. A Mitchell , who completed a first floor apartment in Yarmouth in November 2011. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Yarmouth with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished in 2099. Having 74 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2013 we were e-mailed by Mr and Mrs. U Ali who, having purchased a one bedroom flat in Yarmouth in May 2007. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Yarmouth with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2088. Having 63 years left we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus professional charges.