Mynydd Isa residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 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 residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Hunter was the the leasehold proprietor of a studio apartment in Mynydd Isa on the market with a lease of fraction over 61 years left. Hunter on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. S Martin purchased a garden flat in Mynydd Isa in August 2006. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable homes in Mynydd Isa with an extended lease were worth £173,800. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2080. Having 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
In 2012 we were e-mailed by Mr and Mrs. T Rogers who, having acquired a garden apartment in Mynydd Isa in July 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Mynydd Isa with a long lease were worth £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended in 2091. Taking into account 66 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.