Yaxley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Yaxley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Yaxley you would be well advised to check 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 part of the premium you pay is what is known as a marriage value
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you enhanced control over the value of your Yaxley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Aarav, started to get near to the 80-year threshold with the lease on his ground floor flat in Yaxley. Having purchased his home twenty years previously, the unexpired term was of little interest. Fortunately, he realised he needed to take steps soon on Extending the lease. Aarav arranged for a lease extension just under the wire last July. Aarav and the freeholder in the end agreed on an amount of £5,000 . If he had missed the deadline, the sum would have become more costly by a minimum £975.
Last November we were e-mailed by Mr and Mrs. F Johnson , who bought a studio flat in Yaxley in May 2008. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Yaxley with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished on 13 April 2095. Taking into account 69 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Dr T Ramírez purchased a purpose-built flat in Yaxley in November 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Yaxley with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated in 2084. Considering the 58 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.