As the the remaining lease term of a Mynydd Isa domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Mynydd Isa will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Mynydd Isa leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jasper, came critically near to the eighty-year mark with the lease on his one bedroom apartment in Mynydd Isa. In buying his home 18 years ago, the length of the lease was of no concern. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Jasper extended the lease just ahead of time last September. Jasper and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he not met the deadline, the sum would have increased by a minimum £1,100.
In 2012 we were phoned by Mr Kyle Mercier who, having purchased a one bedroom apartment in Mynydd Isa in April 2002. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Mynydd Isa with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out in 2096. Given that there were 71 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr R Cox completed a one bedroom apartment in Mynydd Isa in November 2004. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Mynydd Isa with a long lease were worth £254,200. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2076. Given that there were 51 years remaining we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of costs.