Yaxley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Yaxley tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Yaxley you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Yaxley flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
The lawyers that we work with handle 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.
Off the back of lengthy negotiations with the landlord of her two bedroom flat in Yaxley, Niamh initiated the lease extension process as the 80 year threshold was quickly advancing. The transaction completed in October 2009. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were contacted by Mr Muhammad Gunderson who, having was assigned a lease of a ground floor flat in Yaxley in February 1995. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Yaxley with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2102. Given that there were 76 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Last Summer we were e-mailed by Mrs N Murphy , who completed a first floor apartment in Yaxley in July 2008. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparable residencies in Yaxley with an extended lease were worth £252,800. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish in 2091. Considering the 65 years outstanding we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.