Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ystalyfera. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Ystalyfera have the legal entitlement to extend the lease for a further 90 years under statute. Please give due deliberation before delaying your Ystalyfera lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Ystalyfera with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Ystalyfera lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After lengthy discussions with the freeholder of her studio apartment in Ystalyfera, Daisy started the lease extension process as the eighty year deadline was quickly nearing. The legal work was finalised in April 2005. The freeholder’s costs were kept to an absolute minimum.
Dr Jamie King bought a studio flat in Ystalyfera in April 2004. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable residencies in Ystalyfera with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 collected per annum. The lease ended in 2087. Having 61 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of expenses.
In 2009 we were approached by Dr V Robinson who, having purchased a basement flat in Ystalyfera in January 2010. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative premises in Ystalyfera with an extended lease were in the region of £260,000. The average ground rent payable was £50 billed per annum. The lease terminated on 6 May 2098. Given that there were 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.