The re-sale value of a leasehold property in Yiewsley is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year cut off point. Leasehold Reform legislation enables Yiewsley qualifying lessees to an additional term of 90 years over and above the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Skipton Building Society | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Yiewsley,the lease extension lawyers 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.
Jake owned a 2 bedroom apartment in Yiewsley being sold with a lease of a little over 61 years remaining. Jake on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Mr Samuel Leroy was assigned a lease of a purpose-built apartment in Yiewsley in January 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Yiewsley with a long lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded in 2082. Considering the 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus expenses.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The number of years remaining on the existing lease(s) was 69 years.