There is no doubt about it a leasehold property in Mountain Ash is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Mountain Ash will qualify for this right; however a conveyancing solicitor can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Mountain Ash with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Mountain Ash,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mountain Ash valuers.
After unsuccessful discussions with the freeholder of her one bedroom flat in Mountain Ash, Bethany commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in May 2007. The landlord’s costs were negotiated to slightly above 600 pounds.
Last Winter we were e-mailed by Mr and Mrs. O Lefebvre , who moved into a basement apartment in Mountain Ash in April 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Mountain Ash with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired in 2103. Considering the 77 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
In 2009 we were e-mailed by Mrs Alicia Clark who, having completed a basement apartment in Mountain Ash in January 2008. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Mountain Ash with a long lease were worth £183,600. The average ground rent payable was £65 collected monthly. The lease came to a finish on 15 June 2083. Having 57 years outstanding we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.