When it comes to long leasehold premises in Yelverton, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Anyone in Yelverton with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Yelverton with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Yelverton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her first floor apartment in Yelverton, Harriet initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction was finalised in January 2011. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Mrs B Pérez , who moved into a one bedroom flat in Yelverton in April 2002. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Yelverton with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 collected annually. The lease concluded on 13 August 2101. Having 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were phoned by Mrs S Patel who, having was assigned a lease of a studio apartment in Yelverton in October 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Yelverton with a long lease were worth £250,400. The average ground rent payable was £65 collected monthly. The lease came to a finish on 8 January 2090. Having 64 years as a residual term we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.