Why you should start your Yeovil lease extension

Why you should start your Yeovil lease extension today:

Increase your lease and increase your Yeovil property value

The re-sale value of a leasehold property in Yeovil is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year threshold. Statute enables Yeovil qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Yeovil with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not grant a mortgage on a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years remaining - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Yeovil property being difficult to sell or to obtain finance on.

What makes us experts in Yeovil lease extensions?

Retaining our service will provide you enhanced control over the value of your Yeovil leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Yeovil Lease Extension Case Studies:

David, Yeovil, Somerset

Last Summer David, came very near to the eighty-year threshold with the lease on his purpose- built flat in Yeovil. In buying his flat 19 years previously, the length of the lease was of no significance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. David extended the lease just in the nick of time in July. David and the landlord who owned the flat above eventually settled on sum of £5,000 . If the lease had dropped below 80 years, the figure would have gone up by at least £1,025.

Yeovil case:

Mr and Mrs. V Cox took over the lease of a one bedroom apartment in Yeovil in April 2009. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparative properties in Yeovil with a long lease were in the region of £166,400. The average ground rent payable was £60 invoiced quarterly. The lease finished on 6 June 2080. Considering the 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.

Yeovil case:

Mr and Mrs. M Robinson completed a one bedroom flat in Yeovil in October 1996. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative flats in Yeovil with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected monthly. The lease terminated in 2091. Taking into account 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.