As the length of the unexpired term of a Yelverton residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Yelverton will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Yelverton leasehold, as your property will be more valuable and marketable in respect of 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.
Last year Toby, came seriously near to the eighty-year threshold with the lease on his one bedroom flat in Yelverton. In buying his flat twenty years previously, the lease term was of minimal relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Toby was able to extend his lease just in the nick of time in May. Toby and the freeholder in the end agreed on the final figure of £6,000 . If he not met the deadline, the figure would have escalated by at least £1,000.
In 2010 we were e-mailed by Mr and Mrs. W Garcia who, having bought a basement flat in Yelverton in March 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Yelverton with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 billed annually. The lease expiry date was in 2086. Taking into account 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus costs.
Mr and Mrs. W Lefebvre owned a basement apartment in Yelverton in April 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Yelverton with a long lease were valued about £171,800. The average amount of ground rent was £55 collected every twelve months. The lease lapsed in 2075. Having 50 years left we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.