For anyone whose Yarmouth home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Yarmouth can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
In the wake of eight months of unsuccessful negotiations with the landlord of her first floor apartment in Yarmouth, Aimee started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work completed in August 2010. The freeholder’s fees were kept to an absolute minimum.
Mrs Victoria Morgan completed a garden apartment in Yarmouth in November 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical homes in Yarmouth with an extended lease were worth £243,000. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 16 February 2089. Given that there were 63 years left we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including professional charges.
In 2013 we were contacted by Ms A Robinson who, having owned a garden flat in Yarmouth in August 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Yarmouth with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2078. Considering the 52 years left we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.