When it comes to domestic leasehold premises in Yiewsley, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Yiewsley with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Yiewsley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yiewsley valuers.
14 months ago Freddie, started to get close to the 80-year threshold with the lease on his two bedroom flat in Yiewsley. In buying his home twenty years ago, the length of the lease was of minimal significance. Fortunately, he became aware that he needed to take action soon on a lease extension. Freddie extended the lease at the eleventh hour in September. Freddie and the freeholder eventually settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,000.
Mr Alexander Davies took over the lease of a recently refurbished flat in Yiewsley in March 1996. The question was if we could approximate the price would be to extend the lease by 90 years. Comparative properties in Yiewsley with an extended lease were worth £225,400. The average ground rent payable was £45 collected every twelve months. The lease concluded on 20 May 2089. Given that there were 64 years left we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Yiewsley property 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 related to 2 flats. The remaining number of years on the lease was 69 years.