Chances are that if you own a flat in Yelverton you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Yelverton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Yelverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan owned a high value apartment in Yelverton on the market with a lease of a little over 59 years unexpired. Jonathan on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last year we were phoned by Mr S Rogers , who took over the lease of a ground floor apartment in Yelverton in February 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Yelverton with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 collected annually. The lease elapsed in 2097. Taking into account 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
Mrs Rachel Hill bought a ground floor apartment in Yelverton in October 1997. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Yelverton with a long lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease expired in 2086. Taking into account 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.