The re-sale value of a leasehold property in Yateley is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year mark. Current legislation enables Yateley qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the freeholder of her garden apartment in Yateley, Daisy started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension completed in August 2008. The landlord’s charges were restricted to a tad over 650 pounds.
Last Winter we were contacted by Mrs B Hernández , who completed a ground floor apartment in Yateley in October 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Yateley with an extended lease were worth £264,000. The average ground rent payable was £60 billed per annum. The lease terminated in 2079. Considering the 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including fees.
Mr Harrison Wood acquired a ground floor flat in Yateley in January 2008. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative premises in Yateley with 100 year plus lease were valued around £225,400. The mid-range amount of ground rent was £45 billed annually. The lease ended in 2090. Given that there were 64 years outstanding we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.