For anyone whose Yiewsley home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Yiewsley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Yiewsley valuers.
During the course of the last few months Leo, came critically near to the 80-year mark with the lease on his leasehold apartment in Yiewsley. Having purchased his property two decades ago, the lease term was of little interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Leo extended the lease just ahead of time last August. Leo and the freeholder eventually settled on a premium of £5,000 . If he had missed the deadline, the amount would have escalated by at least £925.
Ms V Morgan owned a one bedroom flat in Yiewsley in March 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar flats in Yiewsley with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 21 July 2084. Having 59 years left we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.
An example of a Freehold Enfranchisement decision for a Yiewsley residence 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 number of years remaining on the existing lease(s) was 69 years.