The re-sale value of a leasehold property in Mynydd Isa depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded well before the eighty year mark. Leasehold Reform legislation entitles Mynydd Isa qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Mynydd Isa with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Mynydd Isa leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her ground floor apartment in Mynydd Isa, Naomi commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was finalised in September 2010. The landlord’s costs were kept to an absolute minimum.
Last Summer we were approach by Dr S Martínez , who completed a one bedroom apartment in Mynydd Isa in February 2009. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Mynydd Isa with an extended lease were in the region of £208,200. The average amount of ground rent was £65 billed quarterly. The lease expiry date was in 2087. Considering the 61 years outstanding we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including legals.
Last Autumn we were e-mailed by Dr Jackson Michel , who owned a purpose-built apartment in Mynydd Isa in August 1998. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Mynydd Isa with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2098. Considering the 72 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.