The only way is down when it comes to Yiewsley lease terms. Yiewsley properties that have a residual term lower than 80 years will reduce in value even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with undertake Yiewsley 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.
Aarav was the the leasehold owner of a studio apartment in Yiewsley on the market with a lease of a few days over sixty years remaining. Aarav on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were approached by Mr H Hill who, having owned a basement apartment in Yiewsley in June 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Yiewsley with a long lease were valued around £210,600. The average ground rent payable was £45 collected per annum. The lease finished in 2087. Taking into account 62 years left we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Yiewsley flat 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 number of years remaining on the existing lease(s) was 69 years.