As the length of the unexpired term of a Yate residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Yate will qualify for this right; however a lawyer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Yate,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yate valuers.
Lewis was the the leasehold owner of a high value apartment in Yate on the market with a lease of fraction over 72 years remaining. Lewis on an informal basis spoke with his landlord a well known local-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 subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. M Walker who, having purchased a basement apartment in Yate in February 1995. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative residencies in Yate with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished on 28 March 2103. Given that there were 79 years left we calculated the premium to the landlord for the lease extension to be between £7,600 and £8,800 plus legals.
Ms Aimee Moore was assigned a lease of a purpose-built apartment in Yate in July 2006. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Yate with an extended lease were valued about £270,000. The mid-range ground rent payable was £65 billed monthly. The lease ended on 17 March 2092. Having 68 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.