The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Yelverton have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give careful consideration before delaying your Yelverton lease extension. Shelving the costs today simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold premises in Yelverton with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Yelverton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her purpose-built apartment in Yelverton, Erin initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in March 2009. The freeholder’s costs were negotiated to a tad over five hundred GBP.
Mr Ben Baker owned a basement flat in Yelverton in November 2012. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Yelverton with a long lease were valued about £174,200. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was on 25 March 2077. Considering the 51 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
In 2011 we were contacted by Mr Dexter Richardson who, having moved into a one bedroom flat in Yelverton in August 2003. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable homes in Yelverton with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease expiry date was in 2097. Given that there were 71 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.