When it comes to residential leasehold property in Yelverton, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Yelverton with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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.
Trailing protracted negotiations with the freeholder of her ground floor flat in Yelverton, Rhiannon started the lease extension process as the 80 year threshold was fast nearing. The lease extension completed in March 2009. The landlord’s charges were restricted to a tad over 650 GBP.
Last Spring we were called by Mr and Mrs. W Baker , who purchased a basement apartment in Yelverton in May 2001. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical properties in Yelverton with a long lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 15 February 2082. Considering the 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.
Last January we were contacted by Mrs C Girard , who moved into a basement flat in Yelverton in June 2000. The question was if we could approximate the price could be to extend the lease by 90 years. Comparative homes in Yelverton with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish in 2102. Having 77 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.