Unfortunately that a Yelverton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Yelverton property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Most flat owners in Yelverton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
Retaining our service gives you better control over the value of your Yelverton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim owned a studio apartment in Yelverton on the market with a lease of a few days over sixty years remaining. Ibrahim informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were e-mailed by Mr and Mrs. P Rivera who, having purchased a newly refurbished flat in Yelverton in January 1996. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative homes in Yelverton with a long lease were valued around £252,800. The mid-range amount of ground rent was £65 collected quarterly. The lease expired in 2088. Taking into account 65 years remaining we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.
In 2013 we were called by Dr Anna Simon who, having bought a one bedroom flat in Yelverton in February 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Yelverton with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease expired on 19 September 2077. Considering the 54 years left we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus costs.