The re-sale value of a leasehold property in Mynydd Isa depends on how long the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year threshold. Current legislation enables Mynydd Isa qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Mynydd Isa with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Mynydd Isa,the lease extension experts 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 Mynydd Isa valuers.
Trailing protracted correspondence with the landlord of her garden flat in Mynydd Isa, Georgia initiated the lease extension process just as her lease was approaching the all-important 80-year deadline. The lease extension completed in May 2009. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were contacted by Dr Katie King who, having completed a purpose-built apartment in Mynydd Isa in March 2005. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Mynydd Isa with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected quarterly. The lease came to a finish on 15 September 2095. Having 70 years unexpired we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus professional charges.
Mr Jason Gómez moved into a garden flat in Mynydd Isa in January 1997. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Mynydd Isa with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed in 2075. Having 50 years unexpired we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including professional charges.