The only way is down when it comes to Machynlleth lease terms. Machynlleth flats that have a remaining term fewer than 80 years will reduce in value even faster, and the cost to extend your lease will go up.
Leasehold premises in Machynlleth with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
The lawyers that we work with handle 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.
Off the back of lengthy correspondence with the landlord of her one bedroom flat in Machynlleth, Niamh initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction was finalised in April 2007. The landlord’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. D Morel , who was assigned a lease of a first floor apartment in Machynlleth in May 1997. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Machynlleth with a long lease were valued around £225,400. The average amount of ground rent was £45 collected annually. The lease finished in 2089. Given that there were 64 years unexpired we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. F Adams who, having moved into a one bedroom apartment in Machynlleth in April 1998. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable premises in Machynlleth with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish in 2100. Given that there were 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.