The value of Yate leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold properties in Yate with more than one hundred 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Regardless of whether you are a tenant or a landlord in Yate,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yate valuers.
Twenty four months ago Jude, started to get close to the 80-year mark with the lease on his purpose- built flat in Yate. In buying his property twenty years ago, the unexpired term was of no importance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Jude was able to extend his lease just under the wire in May. Jude and the freeholder in the end agreed on an amount of £5,000 . If the lease had slipped lower than 80 years, the amount would have increased by a minimum £875.
In 2014 we were called by Mr Edward Ali who, having moved into a recently refurbished apartment in Yate in February 2008. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative residencies in Yate with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended in 2077. Given that there were 51 years left we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
In 2010 we were contacted by Mrs K Cox who, having completed a first floor flat in Yate in August 2010. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative residencies in Yate with an extended lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease elapsed on 28 August 2097. Taking into account 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.