It’s a harsh certainty that a Yaxley 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 depreciation being disguised by increases in the Yaxley property prices.Once your lease nears 85ish years, you should start considering 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 falls below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Yaxley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Yaxley with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Yaxley leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a studio apartment in Yaxley being sold with a lease of a little over fifty eight years left. Reuben informally contacted his landlord 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 rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. O Khan who, having was assigned a lease of a first floor apartment in Yaxley in March 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Yaxley with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded on 19 October 2081. Given that there were 55 years remaining we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of legals.
Last Winter we were e-mailed by Mr and Mrs. I Petit , who was assigned a lease of a purpose-built flat in Yaxley in April 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Yaxley with an extended lease were valued around £295,000. The mid-range ground rent payable was £50 collected quarterly. The lease termination date was in 2101. Considering the 75 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.