Yateley leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Yateley will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Yateley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
18 months ago John, came seriously near to the 80-year mark with the lease on his garden apartment in Yateley. Having bought his home two decades ago, the unexpired term was of little importance. Fortunately, he noticed he needed to take action soon on a lease extension. John extended the lease just in the nick of time in March. John and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If the lease had gone below 80 years, the sum would have gone up by at least £1,150.
Dr I Richardson bought a first floor flat in Yateley in August 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative properties in Yateley with 100 year plus lease were valued about £191,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish on 11 October 2084. Having 58 years remaining we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus professional charges.
In 2014 we were phoned by Mr and Mrs. V Morgan who, having moved into a studio apartment in Yateley in November 2002. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Yateley with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2095. Given that there were 69 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.