The market value of a leasehold property in Yoxall is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be concluded prior to the 80 year mark. Current legislation entitles Yoxall qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 Yoxall can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Yoxall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William owned a 2 bedroom apartment in Yoxall on the market with a lease of a little over fifty eight years left. William informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were William to exercise his statutory right. William procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last month we were approach by Mr and Mrs. O Khan , who completed a basement apartment in Yoxall in January 2005. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Yoxall with an extended lease were valued around £201,200. The average amount of ground rent was £55 billed annually. The lease terminated on 12 April 2081. Taking into account 56 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.
Last Summer we were e-mailed by Dr W Mitchell , who purchased a purpose-built flat in Yoxall in October 2012. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Yoxall with an extended lease were worth £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2101. Considering the 76 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.