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. If you are a leasehold owner in Mynydd Isa you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Mynydd Isa leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Mynydd Isa with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Mynydd Isa lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Leo, started to get near to the eighty-year mark with the lease on his studio flat in Mynydd Isa. In buying his flat two decades ago, the unexpired term was of little bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Leo arranged for a lease extension just under the wire last January. Leo and the landlord in the end agreed on an amount of £6,000 . If he had missed the deadline, the premium would have become more costly by a minimum £975.
Mr and Mrs. J Wright bought a first floor flat in Mynydd Isa in November 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Mynydd Isa with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 collected yearly. The lease elapsed on 17 January 2092. Considering the 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2013 we were approached by Ms W Ricardo who, having owned a first floor apartment in Mynydd Isa in August 2010. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable flats in Mynydd Isa with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 4 April 2103. Taking into account 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.