As the the remaining lease term of a Mountain Ash residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Mountain Ash will qualify for this right; nevertheless a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Mountain Ash 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 lawyer we work with provide it.
Subsequent to lengthy negotiations with the landlord of her studio flat in Mountain Ash, Nicole started the lease extension process as the 80 year threshold was quickly advancing. The legal work completed in August 2015. The landlord’s fees were negotiated to a tad over 550 GBP.
Dr G Roberts took over the lease of a ground floor flat in Mountain Ash in October 2007. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical flats in Mountain Ash with a long lease were worth £264,000. The average ground rent payable was £60 invoiced monthly. The lease end date was in 2079. Having 53 years unexpired we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus professional charges.
Mr Samuel Morris completed a ground floor flat in Mountain Ash in March 2012. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Mountain Ash with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 collected per annum. The lease end date was on 13 June 2090. Considering the 64 years remaining we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including professional charges.