Yeadon 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 your lease gets more expensive. It is the case that most Yeadon tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Yeadon you would be well advised to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Yeadon flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Yeadon with in excess of one hundred years outstanding 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Yeadon leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her basement apartment in Yeadon, Megan commenced the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was concluded in February 2011. The landlord’s fees were kept to an absolute minimum.
Dr Jake Watson moved into a one bedroom flat in Yeadon in April 2004. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Similar flats in Yeadon with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2097. Taking into account 71 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2011 we were e-mailed by Ms Isabel Hill who, having was assigned a lease of a first floor apartment in Yeadon in June 2008. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Yeadon with a long lease were valued around £254,200. The mid-range amount of ground rent was £60 collected yearly. The lease termination date was in 2077. Having 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of expenses.