When it comes to long leasehold premises in Yelverton, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years remaining. Residents in Yelverton with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has fewer than 80 years left, under the current legislation the freeholder can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Yelverton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 conveyancing solicitors 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.
In recent months Aarav, started to get near to the eighty-year mark with the lease on his one bedroom flat in Yelverton. In buying his home two decades ago, the lease term was of little bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Aarav extended the lease just ahead of time last April. Aarav and the landlord subsequently agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £1,150.
Mr and Mrs. L Roberts bought a studio apartment in Yelverton in March 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Identical flats in Yelverton with a long lease were worth £257,800. The average amount of ground rent was £65 collected monthly. The lease ended in 2090. Given that there were 65 years remaining we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
Mr Thomas Adams owned a ground floor apartment in Yelverton in March 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative residencies in Yelverton with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed annually. The lease ended on 6 April 2079. Taking into account 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of expenses.