When it comes to domestic leasehold premises in Mynydd Isa, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Mynydd Isa with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Mynydd Isa,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mynydd Isa valuers.
Last October Alfie, started to get near to the 80-year mark with the lease on his basement flat in Mynydd Isa. In buying his home 19 years previously, the lease term was of little relevance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Alfie was able to extend his lease just under the wire last January. Alfie and the freeholder via the management company ultimately agreed on sum of £5,500 . If the lease had dropped lower than 80 years, the price would have escalated by a minimum £975.
In 2014 we were called by Dr Edward Clarke who, having bought a first floor flat in Mynydd Isa in July 1995. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Mynydd Isa with a long lease were valued about £254,200. The average ground rent payable was £60 collected yearly. The lease finished in 2076. Having 51 years remaining we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of costs.
Last Spring we were called by Dr Y Roux , who was assigned a lease of a ground floor apartment in Mynydd Isa in August 1995. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar premises in Mynydd Isa with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish in 2087. Given that there were 62 years left we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.