When it comes to domestic leasehold property in Yelverton, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Yelverton with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has fewer than eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Yelverton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Yelverton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Samuel owned a conversion apartment in Yelverton on the market with a lease of just over fifty eight years remaining. Samuel informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were e-mailed by Dr C Morel who, having completed a studio flat in Yelverton in January 2003. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Yelverton with a long lease were in the region of £260,200. The average amount of ground rent was £65 billed monthly. The lease ran out in 2092. Having 66 years outstanding we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus legals.
Last month we were phoned by Mr and Mrs. G Díaz , who owned a purpose-built apartment in Yelverton in February 2000. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Yelverton with a long lease were valued about £198,800. The mid-range ground rent payable was £55 billed annually. The lease ran out on 9 August 2081. Having 55 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.