The market value of a leasehold property in Yoxall is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year cut off point. Statute enables Yoxall qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Yoxall with in excess of 100 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Yoxall can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 procuring Yoxall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Kian, started to get close to the eighty-year threshold with the lease on his studio apartment in Yoxall. In buying his flat two decades ago, the lease term was of little bearing. Thankfully, he recognised he needed to take steps soon on Extending the lease. Kian extended the lease just in the nick of time in June. Kian and the freeholder via the managing agents in the end settled on a premium of £5,000 . If the lease had slipped lower than 80 years, the price would have increased by at least £1,075.
In 2010 we were approached by Dr P Parker who, having owned a garden apartment in Yoxall in April 2012. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar properties in Yoxall with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 collected annually. The lease ended in 2088. Considering the 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Mrs Caitlin Bailey took over the lease of a recently refurbished flat in Yoxall in November 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in Yoxall with a long lease were worth £181,600. The average ground rent payable was £55 invoiced yearly. The lease came to a finish on 25 September 2077. Taking into account 52 years outstanding we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.