For anyone whose Mynydd Isa flat is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Mynydd Isa,the lease extension lawyers that we work with will always be willing 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.
Following lengthy discussions with the freeholder of her basement flat in Mynydd Isa, Rosie initiated the lease extension process as the 80 year mark was quickly coming. The lease extension was concluded in October 2007. The freeholder’s charges were restricted to about 550 GBP.
In 2009 we were approached by Mr S Rodríguez who, having bought a first floor apartment in Mynydd Isa in October 2001. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Mynydd Isa with 100 year plus lease were in the region of £191,000. The average ground rent payable was £65 collected annually. The lease came to a finish in 2084. Taking into account 58 years unexpired we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.
Dr Dylan Davies owned a studio flat in Mynydd Isa in February 1999. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Similar homes in Mynydd Isa with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed annually. The lease terminated on 24 February 2095. Given that there were 69 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.