Unfortunately that a Yatton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Yatton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Yatton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Yatton with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Yatton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yatton valuers.
Aaron was the the leasehold proprietor of a high value apartment in Yatton on the market with a lease of a few days over fifty eight years outstanding. Aaron informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were approached by Mr M Richardson who, having completed a ground floor apartment in Yatton in September 2012. The question was if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Yatton with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 23 November 2094. Given that there were 68 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Last month we were contacted by Mr Nathan Watson , who bought a one bedroom apartment in Yatton in October 2001. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Yatton with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2105. Taking into account 79 years left we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.