When it comes to domestic leasehold property in Yelverton, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years 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 consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Yelverton with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years outstanding, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Yelverton with more than 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyer we work with provide it.
18 months ago Rory, came dangerously near to the eighty-year threshold with the lease on his one bedroom flat in Yelverton. In buying his property two decades ago, the lease term was of little relevance. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Rory was able to extend his lease just in the nick of time in June. Rory and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £1,150.
In 2010 we were approached by Mr U Lewis who, having owned a studio flat in Yelverton in February 2009. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative residencies in Yelverton with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish in 2096. Given that there were 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
Ms Niamh Michel owned a recently refurbished flat in Yelverton in July 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Yelverton with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish on 21 September 2085. Considering the 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of legals.