Unfortunately that a Ystalyfera residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ystalyfera property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Ystalyfera will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Ystalyfera with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ystalyfera can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ystalyfera lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her two bedroom flat in Ystalyfera, Kirsty commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work completed in January 2007. The freeholder’s costs were negotiated to slightly above 450 GBP.
Last Summer we were contacted by Mr Hunter Laurent , who purchased a first floor flat in Ystalyfera in November 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Ystalyfera with an extended lease were valued around £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 8 October 2080. Taking into account 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.
In 2012 we were e-mailed by Dr Sarah Leroy who, having purchased a one bedroom apartment in Ystalyfera in November 2006. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical flats in Ystalyfera with a long lease were worth £227,800. The average amount of ground rent was £45 collected yearly. The lease terminated on 10 January 2091. Considering the 65 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.