The closer a residential lease in Yateley gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Yateley will qualify for this right; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Yateley with in excess of one hundred years outstanding 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Yateley leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her leasehold apartment in Yateley, Laura commenced the lease extension process as the 80 year mark was quickly coming. The legal work completed in June 2008. The landlord’s fees were kept to an absolute minimum.
Last Winter we were approach by Ms R Roberts , who was assigned a lease of a purpose-built flat in Yateley in January 1996. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative flats in Yateley with an extended lease were valued about £227,800. The average ground rent payable was £45 collected annually. The lease expired in 2091. Taking into account 65 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
In 2014 we were e-mailed by Ms Lydia Parker who, having moved into a ground floor flat in Yateley in September 2006. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Yateley with a long lease were worth £275,000. The average ground rent payable was £55 billed annually. The lease ran out on 21 February 2102. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.