Chances are that where you own a flat in Mynydd Isa you actually own a long leasehold interest over your property
Leasehold premises in Mynydd Isa with in excess of 100 years outstanding 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Mynydd Isa 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 lawyer we work with provide it.
Last year Edward, started to get near to the 80-year threshold with the lease on his garden flat in Mynydd Isa. Having purchased his home twenty years previously, the lease term was of minimal relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Edward extended the lease just in the nick of time in June. Edward and the landlord subsequently settled on an amount of £5,000 . If the lease had slid below eighty years, the price would have escalated by at least £1,025.
Last Autumn we were approach by Mr and Mrs. B Ramírez , who bought a one bedroom apartment in Mynydd Isa in July 2011. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable homes in Mynydd Isa with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 2 September 2076. Considering the 50 years remaining we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of expenses.
In 2010 we were e-mailed by Mr and Mrs. F Walker who, having was assigned a lease of a first floor flat in Mynydd Isa in January 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical flats in Mynydd Isa with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 collected annually. The lease elapsed on 2 October 2087. Having 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.