Yarm On Tees leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Yarm On Tees enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Yarm On Tees you really ought to check if your lease has between seventy and ninety years remaining. There are good reasons why a Yarm On Tees leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Yarm On Tees with over one hundred years remaining on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Yarm On Tees lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the freeholder of her basement flat in Yarm On Tees, Morgan commenced the lease extension process as the eighty year mark was quickly advancing. The transaction completed in June 2015. The landlord’s fees were negotiated to approximately 650 pounds.
Last month we were contacted by Dr A Rivera , who moved into a studio flat in Yarm On Tees in February 2011. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative homes in Yarm On Tees with an extended lease were valued about £200,000. The average ground rent payable was £50 invoiced annually. The lease terminated on 27 July 2102. Given that there were 77 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Last Spring we were contacted by Dr Jade Kelly , who acquired a one bedroom flat in Yarm On Tees in October 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical residencies in Yarm On Tees with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 collected per annum. The lease ran out on 17 July 2091. Considering the 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including expenses.