The re-sale value of a leasehold property in Yiewsley depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee 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 a lease extension can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation enables Yiewsley qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Yiewsley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yiewsley valuers.
Trailing unsuccessful discussions with the freeholder of her studio flat in Yiewsley, Georgina commenced the lease extension process as the eighty year mark was fast nearing. The legal work was concluded in June 2014. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Mrs Ella Roberts , who bought a studio flat in Yiewsley in February 2012. We are asked if we could approximate the price could be for a ninety year lease extension. Identical properties in Yiewsley with an extended lease were worth £166,400. The average amount of ground rent was £60 billed monthly. The lease lapsed on 9 April 2080. Given that there were 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Yiewsley property 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 related to 2 flats. The remaining number of years on the lease was 69 years.