Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Yeading. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Yeading have the right to extend the lease for a further ninety years in accordance with legislation. You should give careful consideration before putting off your Yeading lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Yeading with more than one hundred years unexpired 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Yeading,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yeading valuers.
Off the back of lengthy correspondence with the landlord of her ground floor apartment in Yeading, Kelsey commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was concluded in November 2006. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. V Murphy , who took over the lease of a ground floor flat in Yeading in January 2011. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable residencies in Yeading with an extended lease were valued about £203,200. The mid-range amount of ground rent was £65 collected monthly. The lease expiry date was in 2086. Considering the 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including legals.
An example of a lease Extension decision for a Yeading flat is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case affected 1 flat. The unexpired lease term was 58.19 years.