Yeading leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Yeading tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Yeading you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Yeading leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold proprietor of a conversion apartment in Yeading being marketed with a lease of a few days over 61 years remaining. Finley on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Spring we were called by Dr Melissa Lambert , who was assigned a lease of a ground floor apartment in Yeading in January 2000. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparative flats in Yeading with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced monthly. The lease ran out on 28 September 2080. Considering the 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.
An example of a lease Extension decision for a Yeading residence is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case related to 1 flat. The remaining number of years on the lease was 58.19 years.