Yeovil leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Yeovil tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Yeovil you should see if your lease has between 70 and ninety years left. There are compelling reasons why a Yeovil flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Yeovil with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Yeovil,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yeovil valuers.
Half a year ago Ibrahim, came very close to the 80-year mark with the lease on his ground floor flat in Yeovil. Having bought his property 19 years previously, the lease term was of no concern. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Ibrahim arranged for a lease extension at the eleventh hour last July. Ibrahim and the landlord ultimately settled on the final figure of £5,500 . If the lease had slid lower than eighty years, the price would have increased by a minimum £1,150.
In 2013 we were approached by Mr and Mrs. N Laurent who, having took over the lease of a recently refurbished flat in Yeovil in September 1995. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparative premises in Yeovil with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2101. Taking into account 76 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Mr and Mrs. R André owned a studio apartment in Yeovil in April 1999. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Yeovil with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease expired in 2081. Having 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of costs.