When it comes to domestic leasehold property in Yarm On Tees, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Anyone in Yarm On Tees with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Yarm On Tees with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Yarm On Tees,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yarm On Tees valuers.
Leo was the the leasehold proprietor of a studio flat in Yarm On Tees on the market with a lease of a little over 72 years left. Leo informally spoke with his freeholder a well known London-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 an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Leo to invoke his statutory right. Leo procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. B Jackson owned a one bedroom apartment in Yarm On Tees in May 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Yarm On Tees with 100 year plus lease were valued around £233,200. The average ground rent payable was £60 billed monthly. The lease ran out in 2085. Considering the 61 years left we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus legals.
Dr C Young acquired a one bedroom apartment in Yarm On Tees in July 2002. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative properties in Yarm On Tees with 100 year plus lease were worth £166,800. The mid-range ground rent payable was £50 collected monthly. The lease expired in 2074. Given that there were 50 years remaining we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.