The only way is down when it comes to Mynydd Isa lease terms. Mynydd Isa flats that have a remaining term less than than eighty years will drop in value at a rapid rate, and the cost of extending your lease will rise.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Mynydd Isa leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Harvey, started to get near to the eighty-year mark with the lease on his garden apartment in Mynydd Isa. Having purchased his flat twenty years ago, the length of the lease was of little importance. by good luck, he noticed he needed to take action soon on Extending the lease. Harvey arranged for a lease extension just under the wire in April. Harvey and the freeholder ultimately settled on sum of £6,000 . If he not met the deadline, the premium would have increased by at least £975.
In 2014 we were contacted by Mr and Mrs. L Khan who, having moved into a purpose-built apartment in Mynydd Isa in January 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparable properties in Mynydd Isa with a long lease were worth £280,000. The average amount of ground rent was £55 billed every twelve months. The lease ran out on 11 September 2101. Given that there were 77 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
In 2010 we were e-mailed by Mrs Lily Mercier who, having acquired a recently refurbished apartment in Mynydd Isa in March 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Mynydd Isa with a long lease were worth £183,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease ran out on 24 June 2081. Taking into account 57 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.