Chances are that where you own a flat in Yatton you actually own a long leasehold interest over your property
Leasehold properties in Yatton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Yatton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Nathan, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Yatton. Having purchased his home two decades ago, the unexpired term was of no importance. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Nathan arranged for a lease extension at the eleventh hour last April. Nathan and the freeholder via the managing agents in the end agreed on an amount of £5,500 . If the lease had slipped lower than 80 years, the sum would have increased by at least £1,100.
Last year we were approach by Mrs A Cook , who was assigned a lease of a ground floor flat in Yatton in October 2009. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparative flats in Yatton with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced annually. The lease ended in 2095. Given that there were 70 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
Last year we were phoned by Ms N Khan , who owned a recently refurbished apartment in Yatton in March 1996. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative residencies in Yatton with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 collected monthly. The lease ran out in 2075. Considering the 50 years left we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus expenses.