Yaxley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Yaxley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Yaxley you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Yaxley 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.
During the course of the last few months William, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Yaxley. In buying his home two decades ago, the length of the lease was of no relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. William arranged for a lease extension just ahead of time last January. William and the landlord in the end settled on the final figure of £5,500 . If the lease had dipped lower than eighty years, the premium would have gone up by a minimum £1,150.
Dr Owen Lewis owned a newly refurbished apartment in Yaxley in August 1995. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable properties in Yaxley with an extended lease were valued about £218,400. The mid-range ground rent payable was £60 billed yearly. The lease finished on 28 September 2085. Taking into account 59 years remaining we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of fees.
Last June we were contacted by Ms Phoebe Rodríguez , who owned a one bedroom flat in Yaxley in March 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar homes in Yaxley with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2105. Taking into account 79 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.