Unfortunately that a Yeading residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Yeading property prices.Where your lease has approximately 90 years left, you should start thinking about 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 slips below eighty years - otherwise a higher amount will be due. Most flat owners in Yeading will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Yeading leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Leon, came dangerously close to the 80-year threshold with the lease on his basement apartment in Yeading. In buying his flat 19 years ago, the unexpired term was of minimal significance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Leon arranged for a lease extension just in the nick of time last September. Leon and the landlord ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have become more costly by at least £1,150.
In 2009 we were contacted by Mrs Erin Reed who, having acquired a basement flat in Yeading in November 1995. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable properties in Yeading with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed quarterly. The lease came to a finish on 26 January 2105. Considering the 79 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
An example of a lease Extension decision for a Yeading premises is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case was in relation to 1 flat. The unexpired term was 58.19 years.