With a residential leasehold property in Yate, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Yate with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the current Act the landlord can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Yate with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society | |
| National Westminster Bank |
Using our service gives you better control over the value of your Yate leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Nathan, started to get close to the 80-year threshold with the lease on his leasehold flat in Yate. Having bought his home 18 years ago, the unexpired term was of minimal significance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Nathan arranged for a lease extension just in the nick of time last August. Nathan and the landlord in the end agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have become more costly by at least £975.
Last Autumn we were contacted by Dr B Ricardo , who was assigned a lease of a first floor flat in Yate in February 2007. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparable premises in Yate with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded in 2084. Having 58 years unexpired we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last year we were approach by Mr Kian Roberts , who purchased a newly refurbished apartment in Yate in April 1996. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Yate with a long lease were valued around £200,000. The average amount of ground rent was £50 collected yearly. The lease elapsed on 1 August 2104. Given that there were 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.