With a long leasehold premises in Ystrad Mynach, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Leasehold owners in Ystrad Mynach with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When the lease term has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Ystrad Mynach with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Ystrad Mynach,the lease extension solicitors 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.
18 months ago Tyler, came precariously close to the eighty-year mark with the lease on his one bedroom apartment in Ystrad Mynach. In buying his home twenty years previously, the unexpired term was of little bearing. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Tyler extended the lease at the eleventh hour last July. Tyler and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,100.
Last month we were approach by Mr and Mrs. I Garcia , who owned a studio flat in Ystrad Mynach in November 2007. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Ystrad Mynach with an extended lease were worth £267,600. The average amount of ground rent was £65 invoiced monthly. The lease ran out on 27 March 2092. Taking into account 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus costs.
Mr and Mrs. S Wilson was assigned a lease of a studio flat in Ystrad Mynach in September 1997. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Ystrad Mynach with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 billed every twelve months. The lease concluded on 8 April 2081. Considering the 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.