The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Mynydd Isa have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Mynydd Isa lease extension. Shelving that expense now simply escalates the price you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Mynydd Isa,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mynydd Isa valuers.
14 months ago Leo, started to get close to the eighty-year mark with the lease on his leasehold apartment in Mynydd Isa. In buying his home two decades ago, the unexpired term was of minimal concern. Luckily, he realised he would imminently be paying an inflated amount for a lease extension. Leo arranged for a lease extension just ahead of time in June. Leo and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had dropped below eighty years, the premium would have become more costly by a minimum £975.
Last Summer we were approach by Dr E Morgan , who owned a one bedroom apartment in Mynydd Isa in September 2009. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical properties in Mynydd Isa with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired in 2081. Considering the 56 years outstanding we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of legals.
Mr and Mrs. Y Brown acquired a first floor flat in Mynydd Isa in June 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar flats in Mynydd Isa with an extended lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed on 9 June 2092. Having 67 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.