With a residential leasehold property in Mynydd Isa, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about 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 increases markedly especially when there are fewer than 80 years left. Residents in Mynydd Isa with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has below eighty years left, under the current Act the freeholder can calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Mynydd Isa with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Mynydd Isa leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a conversion apartment in Mynydd Isa being marketed with a lease of a few days over 59 years remaining. Blake informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Christmas we were approach by Mr Kyle Campbell , who completed a studio flat in Mynydd Isa in September 1995. The question was if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Mynydd Isa with an extended lease were valued around £210,600. The average amount of ground rent was £45 invoiced monthly. The lease finished on 9 May 2088. Taking into account 62 years remaining we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus costs.
Last Autumn we were contacted by Mr and Mrs. C Rogers , who bought a one bedroom apartment in Mynydd Isa in March 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical properties in Mynydd Isa with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 collected quarterly. The lease ran out in 2099. Considering the 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.