The only way is down when it comes to Machynlleth lease terms. Machynlleth flats that have a residual term less than than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
The conveyancers that we work with undertake Machynlleth 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 conveyancer we work with provide it.
Following lengthy correspondence with the landlord of her one bedroom flat in Machynlleth, Sarah initiated the lease extension process as the 80 year deadline was swiftly advancing. The lease extension completed in May 2008. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were e-mailed by Mrs Zoe Phillips , who acquired a garden flat in Machynlleth in February 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Machynlleth with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed quarterly. The lease ended on 12 November 2082. Taking into account 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last Summer we were e-mailed by Mrs Nicole Roberts , who purchased a basement flat in Machynlleth in October 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable residencies in Machynlleth with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2093. Having 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.