The value of Mountain Ash leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold premises in Mountain Ash with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Mountain Ash leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her one bedroom apartment in Mountain Ash, Anna initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was finalised in August 2011. The freeholder’s fees were negotiated to less than 650 GBP.
In 2010 we were e-mailed by Mr and Mrs. K Martin who, having owned a garden apartment in Mountain Ash in June 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable residencies in Mountain Ash with a long lease were valued around £191,000. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 10 January 2083. Taking into account 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus legals.
Dr Alice Rivera was assigned a lease of a basement apartment in Mountain Ash in September 2006. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative residencies in Mountain Ash with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease expired on 7 February 2094. Considering the 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.