The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Yaxley have the right to extend the lease for a further 90 years in accordance with statute. Please think carefully before delaying your Yaxley lease extension. Putting off the costs today simply escalates the amount you will eventually be required to pay to extend the lease.
Leasehold properties in Yaxley with over 100 years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Yaxley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yaxley valuers.
Half a year ago Leon, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Yaxley. Having bought his property 19 years previously, the unexpired term was of minimal concern. As luck would have it, he realised he needed to take steps soon on a lease extension. Leon extended the lease just under the wire last March. Leon and the landlord eventually agreed on sum of £5,500 . If the lease had dropped to less than eighty years, the premium would have escalated by a minimum £1,075.
In 2009 we were called by Mr and Mrs. E Alexander who, having bought a one bedroom flat in Yaxley in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Yaxley with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired in 2106. Taking into account 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Dr A Harris purchased a purpose-built apartment in Yaxley in August 1995. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Yaxley with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2095. Considering the 69 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.