With a long leasehold property in Mountain Ash, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Leasehold owners in Mountain Ash with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has fewer than eighty years outstanding, under the relevant Act the landlord can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Mountain Ash with over 100 years remaining on the lease are often 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 buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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 be at least 30 years plus the term of the mortgage at the outset 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 |
Lease extensions in Mountain Ash can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 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 the wake of 9 months of protracted discussions with the landlord of her basement flat in Mountain Ash, Melissa commenced the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in March 2006. The freeholder’s fees were negotiated to about 650 pounds.
Last Christmas we were phoned by Dr Arthur Young , who purchased a purpose-built apartment in Mountain Ash in August 1998. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Mountain Ash with an extended lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish on 26 August 2105. Taking into account 79 years remaining we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
Last month we were e-mailed by Mr and Mrs. W Bernard , who completed a basement apartment in Mountain Ash in July 2000. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative residencies in Mountain Ash with an extended lease were in the region of £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease terminated on 28 April 2085. Taking into account 59 years remaining we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus costs.