With a long leasehold property in Mynydd Isa, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Leasehold owners in Mynydd Isa with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has under 80 years left, under the current Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Mynydd Isa with over one hundred years unexpired 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Lease extensions in Mynydd Isa can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mynydd Isa lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Jackson, came very close to the 80-year threshold with the lease on his ground floor flat in Mynydd Isa. In buying his home two decades ago, the length of the lease was of no relevance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Jackson was able to extend his lease just under the wire in June. Jackson and the landlord subsequently agreed on the final figure of £5,500 . If the lease had descended below 80 years, the price would have become more exhorbitant by at least £925.
Last Spring we were approach by Mr Ibrahim Roux , who moved into a basement apartment in Mynydd Isa in November 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Mynydd Isa with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 billed annually. The lease ran out in 2103. Considering the 78 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
Last April we were approach by Mr and Mrs. O Edwards , who owned a basement apartment in Mynydd Isa in March 2008. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparative properties in Mynydd Isa with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated in 2083. Taking into account 58 years outstanding we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of expenses.