The market value of a leasehold property in Mynydd Isa is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Mynydd Isa qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB | |
| Virgin |
Engaging our service gives you enhanced control over the value of your Mynydd Isa leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Edward owned a high value flat in Mynydd Isa on the market with a lease of just over 59 years outstanding. Edward on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. A Collins who, having bought a purpose-built apartment in Mynydd Isa in August 2003. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative residencies in Mynydd Isa with a long lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2102. Given that there were 76 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
In 2010 we were phoned by Mr Max Reed who, having took over the lease of a studio apartment in Mynydd Isa in October 1995. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative premises in Mynydd Isa with an extended lease were valued around £176,200. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2082. Given that there were 56 years remaining we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including expenses.