Unfortunately that a Ystalyfera residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Ystalyfera property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. The majority of leasehold 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 situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Ystalyfera,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ystalyfera valuers.
Caleb owned a conversion apartment in Ystalyfera on the market with a lease of a few days over 61 years outstanding. Caleb informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last year we were called by Dr G Reed , who completed a one bedroom apartment in Ystalyfera in March 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Ystalyfera with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 billed yearly. The lease finished in 2088. Taking into account 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of legals.
Mr Arthur Dupont bought a ground floor apartment in Ystalyfera in May 2005. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical residencies in Ystalyfera with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed in 2099. Given that there were 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.