The market value of Yatton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold properties in Yatton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Yatton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
William was the the leasehold proprietor of a high value apartment in Yatton on the market with a lease of a little over 61 years outstanding. William informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were contacted by Mrs A Rogers who, having moved into a garden flat in Yatton in May 1999. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical properties in Yatton with a long lease were valued around £254,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease end date was on 1 August 2076. Given that there were 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including legals.
In 2013 we were called by Mr F Ricardo who, having completed a garden flat in Yatton in February 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Yatton with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expiry date was on 14 June 2087. Considering the 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.