Ystrad Mynach leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Ystrad Mynach will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ystrad Mynach,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ystrad Mynach valuers.
Oliver was the the leasehold owner of a studio apartment in Ystrad Mynach on the market with a lease of a little over sixty years outstanding. Oliver on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Spring we were approach by Dr Ellen White , who acquired a one bedroom flat in Ystrad Mynach in May 2008. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Ystrad Mynach with an extended lease were valued around £225,800. The average amount of ground rent was £60 billed per annum. The lease finished in 2086. Taking into account 60 years left we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including fees.
Mr and Mrs. R Nguyen moved into a garden flat in Ystrad Mynach in November 2011. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative residencies in Ystrad Mynach with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ended on 25 May 2106. Taking into account 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.