As the length of the unexpired term of a Mynydd Isa residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over 99 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Mynydd Isa will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Mynydd Isa with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Mynydd Isa leasehold, as your property will be more valuable and saleable in relation to the 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.
Last Summer Ryan, started to get near to the 80-year mark with the lease on his basement flat in Mynydd Isa. In buying his flat two decades ago, the length of the lease was of little importance. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Ryan was able to extend his lease just under the wire in May. Ryan and the freeholder subsequently settled on the final figure of £5,000 . If the lease had dropped below eighty years, the sum would have gone up by a minimum £1,025.
In 2014 we were called by Mr and Mrs. V Cox who, having was assigned a lease of a purpose-built apartment in Mynydd Isa in April 1995. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Mynydd Isa with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced monthly. The lease ran out in 2103. Considering the 79 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
In 2014 we were approached by Ms Tia Michel who, having bought a recently refurbished flat in Mynydd Isa in January 1999. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Mynydd Isa with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 billed every twelve months. The lease finished in 2083. Taking into account 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.