Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Yate. Inevitably, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Yate have the right to extend the lease for a further ninety years in accordance with legislation. Do give due deliberation before putting off your Yate lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Lease extensions in Yate can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring Yate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the landlord of her garden apartment in Yate, Freya commenced the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension was concluded in September 2014. The landlord’s charges were restricted to below 550 GBP.
In 2010 we were e-mailed by Mr and Mrs. A Sánchez who, having was assigned a lease of a purpose-built apartment in Yate in October 2005. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Yate with a long lease were worth £243,000. The mid-range ground rent payable was £65 invoiced monthly. The lease expired in 2088. Given that there were 63 years unexpired we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.
Dr Rosie Hernández completed a first floor flat in Yate in June 2005. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical properties in Yate with an extended lease were worth £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded on 4 June 2077. Having 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.