Yiewsley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Yiewsley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Yiewsley you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Yiewsley with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Yiewsley can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Yiewsley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jayden, started to get near to the eighty-year threshold with the lease on his basement flat in Yiewsley. In buying his property twenty years ago, the lease term was of minimal interest. by good luck, he realised he needed to take action soon on a lease extension. Jayden arranged for a lease extension at the eleventh hour last July. Jayden and the freeholder eventually agreed on sum of £6,000 . If the lease had dipped to less than eighty years, the premium would have become more costly by at least £925.
In 2013 we were phoned by Mr and Mrs. E Murphy who, having owned a first floor apartment in Yiewsley in October 2001. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Yiewsley with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed annually. The lease ran out in 2101. Given that there were 75 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Yiewsley premises 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 lease term was 69 years.