The market value of a leasehold property in Yeovil depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation entitles Yeovil qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Yeovil can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 procuring Yeovil lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam owned a studio flat in Yeovil on the market with a lease of just over sixty years outstanding. Adam on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last January we were e-mailed by Mr and Mrs. H Ward , who bought a one bedroom apartment in Yeovil in November 2004. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Yeovil with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ended in 2104. Taking into account 78 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
In 2013 we were called by Mr and Mrs. J Simon who, having owned a garden flat in Yeovil in November 2009. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable homes in Yeovil with a long lease were valued around £191,000. The average ground rent payable was £65 collected yearly. The lease elapsed in 2084. Taking into account 58 years outstanding we calculated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus professional charges.