The value of Yelverton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than eighty years
Leasehold properties in Yelverton with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Alex was the the leasehold owner of a studio apartment in Yelverton on the market with a lease of fraction over sixty years left. Alex on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Alex to invoke his statutory right. Alex obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Spring we were approach by Mr and Mrs. R Díaz , who owned a ground floor apartment in Yelverton in March 2009. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar properties in Yelverton with a long lease were valued around £181,600. The average ground rent payable was £55 billed every twelve months. The lease came to a finish in 2077. Having 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.
In 2013 we were approached by Dr Logan Watson who, having purchased a newly refurbished apartment in Yelverton in July 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Yelverton with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2097. Having 72 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.