The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Yelverton may extend the lease for an additional ninety years under statute. Please think carefully before delaying your Yelverton lease extension. Putting off that expense today simply escalates the premium you will ultimately have to pay for a lease extension.
Leasehold residencies in Yelverton with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Yelverton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yelverton valuers.
Last year Ben, started to get near to the 80-year threshold with the lease on his garden apartment in Yelverton. In buying his home two decades ago, the length of the lease was of little relevance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Ben arranged for a lease extension at the eleventh hour last May. Ben and the freeholder via the managing agents in the end settled on an amount of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,075.
In 2013 we were e-mailed by Mr F Miller who, having completed a basement apartment in Yelverton in November 2000. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable premises in Yelverton with 100 year plus lease were in the region of £171,800. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2076. Having 50 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including legals.
Last Autumn we were contacted by Dr P Torres , who moved into a garden flat in Yelverton in January 1996. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparative homes in Yelverton with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2096. Taking into account 70 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.