The nearer a domestic lease in Mountain Ash gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Mountain Ash will qualify for this right; however a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Mountain Ash can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge dealing with Mountain Ash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Aiden, started to get near to the eighty-year threshold with the lease on his first floor flat in Mountain Ash. In buying his home twenty years previously, the lease term was of minimal interest. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Aiden arranged for a lease extension at the eleventh hour last May. Aiden and the freeholder via the management company in the end agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,100.
In 2009 we were called by Ms Courtney Hill who, having was assigned a lease of a one bedroom apartment in Mountain Ash in May 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar premises in Mountain Ash with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out in 2076. Having 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus fees.
In 2011 we were contacted by Ms Alexandra Ward who, having owned a garden flat in Mountain Ash in February 2002. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative homes in Mountain Ash with a long lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expiry date was on 5 March 2087. Given that there were 62 years left we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus legals.