Yiewsley 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 your lease gets more expensive. Most owners of residential leasehold property in Yiewsley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Yiewsley you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 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.
Last Winter Benjamin, came seriously near to the 80-year threshold with the lease on his leasehold apartment in Yiewsley. In buying his flat two decades ago, the lease term was of minimal bearing. Thankfully, he noticed he needed to take action soon on a lease extension. Benjamin arranged for a lease extension just in the nick of time last April. Benjamin and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had gone below 80 years, the sum would have increased by at least £975.
Dr S Phillips moved into a one bedroom flat in Yiewsley in August 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Yiewsley with a long lease were valued about £183,600. The average amount of ground rent was £65 billed quarterly. The lease concluded on 23 May 2082. Given that there were 57 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Yiewsley residence 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 was 69 years.