Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Yelverton. Clearly, the term of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Yelverton have the legal entitlement to extend the lease for a further ninety years under statute. Please give due deliberation before delaying your Yelverton lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with handle Yelverton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
James owned a high value flat in Yelverton being marketed with a lease of fraction over 61 years remaining. James on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms S Moore bought a newly refurbished flat in Yelverton in November 2000. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Similar premises in Yelverton with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2104. Considering the 78 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2013 we were approached by Mr D González who, having moved into a one bedroom flat in Yelverton in January 1998. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative flats in Yelverton with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 collected quarterly. The lease concluded in 2093. Considering the 67 years outstanding we approximated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 plus expenses.