Yateley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Yateley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Yateley you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Yateley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jake, came critically near to the eighty-year threshold with the lease on his garden flat in Yateley. Having purchased his home two decades ago, the lease term was of minimal importance. Luckily, he recognised he needed to take action soon on Extending the lease. Jake arranged for a lease extension at the eleventh hour last June. Jake and the freeholder via the managing agents subsequently agreed on sum of £5,500 . If he not met the deadline, the price would have escalated by at least £950.
Last Christmas we were e-mailed by Dr E Simon , who acquired a purpose-built apartment in Yateley in March 2012. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Yateley with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 collected annually. The lease termination date was on 19 June 2086. Taking into account 60 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.
In 2014 we were called by Mr and Mrs. A López who, having completed a one bedroom flat in Yateley in July 2012. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparative properties in Yateley with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 2 May 2097. Considering the 71 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.