Mynydd Isa leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Mynydd Isa enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mynydd Isa you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Mynydd Isa with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Mynydd Isa can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 dealing with 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.
Last year Aiden, started to get close to the 80-year threshold with the lease on his leasehold apartment in Mynydd Isa. Having bought his home two decades ago, the length of the lease was of little concern. Thankfully, he recognised he needed to take steps soon on Extending the lease. Aiden was able to extend his lease at the eleventh hour in April. Aiden and the freeholder via the management company eventually agreed on an amount of £5,500 . If he had missed the deadline, the sum would have become more costly by at least £1,025.
Dr Jacob Smith was assigned a lease of a basement flat in Mynydd Isa in June 2002. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Identical properties in Mynydd Isa with an extended lease were worth £200,800. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2085. Considering the 60 years remaining we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus expenses.
Dr J Young acquired a purpose-built flat in Mynydd Isa in October 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Mynydd Isa with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish on 1 July 2096. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.