For anyone whose Mountain Ash property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Mountain Ash can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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.
Zachary was the the leasehold owner of a 2 bedroom apartment in Mountain Ash on the market with a lease of fraction over sixty years left. Zachary on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Autumn we were e-mailed by Mr G Kelly , who was assigned a lease of a first floor apartment in Mountain Ash in August 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Mountain Ash with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease lapsed in 2095. Having 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 not including fees.
Ms D Brown acquired a first floor flat in Mountain Ash in March 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Mountain Ash with a long lease were in the region of £246,800. The average amount of ground rent was £60 collected annually. The lease elapsed in 2075. Given that there were 50 years remaining we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus expenses.