Yelverton 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 Yelverton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Yelverton you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Yelverton with in excess of 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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.
Toby was the the leasehold proprietor of a conversion flat in Yelverton being sold with a lease of fraction over fifty eight years remaining. Toby informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. T Gómez purchased a first floor flat in Yelverton in May 2012. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Yelverton with an extended lease were valued about £191,400. The average ground rent payable was £55 invoiced monthly. The lease concluded on 20 February 2080. Considering the 54 years left we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including costs.
Dr Sophie Miller took over the lease of a basement flat in Yelverton in January 2002. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative homes in Yelverton with a long lease were in the region of £295,000. The average ground rent payable was £45 collected every twelve months. The lease came to a finish in 2100. Given that there were 74 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.