For those whose Yaxley home is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Yaxley with over 100 years remaining on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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 |
| 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. |
Lease extensions in Yaxley can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Yaxley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her two bedroom apartment in Yaxley, Tia commenced the lease extension process as the 80 year mark was quickly nearing. The transaction completed in January 2005. The freeholder’s fees were restricted to under 700 pounds.
Mr Jamie Torres moved into a purpose-built flat in Yaxley in July 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Yaxley with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was in 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Last year we were called by Ms R Michel , who owned a studio apartment in Yaxley in August 1997. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical properties in Yaxley with a long lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 11 June 2092. Having 66 years remaining we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including legals.