Mynydd Isa leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Mynydd Isa residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Mynydd Isa you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Lease extensions in Mynydd Isa can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Mynydd Isa lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Ibrahim, came critically close to the 80-year mark with the lease on his leasehold flat in Mynydd Isa. In buying his home 18 years previously, the length of the lease was of minimal bearing. Thankfully, he noticed he needed to take steps soon on a lease extension. Ibrahim arranged for a lease extension just ahead of time in July. Ibrahim and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £1,025.
Mr and Mrs. K Walker completed a purpose-built flat in Mynydd Isa in September 2002. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative homes in Mynydd Isa with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 6 August 2083. Taking into account 57 years as a residual term we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.
Ms U Smith bought a purpose-built flat in Mynydd Isa in November 2011. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Mynydd Isa with an extended lease were worth £245,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was on 26 June 2094. Taking into account 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.