The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Yiewsley may extend the lease for a further ninety years under legislation. Please give careful consideration before delaying your Yiewsley lease extension. Postponing that expense now simply increases the premium you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with handle Yiewsley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Stanley owned a high value flat in Yiewsley on the market with a lease of a little over fifty eight years remaining. Stanley informally spoke with his freeholder 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 an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last September we were contacted by Dr V Torres , who was assigned a lease of a ground floor apartment in Yiewsley in June 1996. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Yiewsley with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected per annum. The lease ran out on 17 June 2090. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including fees.
An example of a Freehold Enfranchisement decision for a Yiewsley flat is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired term was 69 years.