Yiewsley residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in Yiewsley with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
During the course of the last few months Daniel, came perilously close to the eighty-year threshold with the lease on his ground floor apartment in Yiewsley. Having bought his property two decades ago, the length of the lease was of no bearing. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Daniel was able to extend his lease just under the wire in May. Daniel and the landlord ultimately agreed on an amount of £5,500 . If the lease had dropped lower than 80 years, the premium would have become more exhorbitant by a minimum £1,100.
Last Winter we were contacted by Dr Leon Moreau , who moved into a first floor apartment in Yiewsley in February 2007. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative residencies in Yiewsley with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease finished in 2099. Taking into account 74 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
An example of a Freehold Enfranchisement decision for a Yiewsley premises 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 affected 2 flats. The unexpired term as at the valuation date was 69 years.