When it comes to long leasehold premises in Yate, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Yate with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the relevant legislation the landlord can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Yate with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Yate leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dylan, started to get close to the 80-year mark with the lease on his two bedroom flat in Yate. Having bought his home two decades ago, the unexpired term was of no interest. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Dylan arranged for a lease extension at the eleventh hour last June. Dylan and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had gone to less than 80 years, the figure would have gone up by a minimum £925.
Last month we were contacted by Mr and Mrs. Y Roux , who moved into a one bedroom flat in Yate in July 1995. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Yate with a long lease were in the region of £252,800. The average ground rent payable was £65 billed monthly. The lease terminated on 7 March 2090. Having 65 years remaining we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.
In 2014 we were contacted by Mr and Mrs. V Gray who, having acquired a first floor apartment in Yate in May 1997. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative residencies in Yate with an extended lease were in the region of £191,400. The average ground rent payable was £55 billed every twelve months. The lease end date was on 27 August 2079. Having 54 years unexpired we approximated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus professional charges.