Unfortunately that a Ystrad Mynach residential lease is a wasting asset. As the lease term reduces 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 Ystrad Mynach property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying 50% 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 Most leasehold owners in Ystrad Mynach will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Ystrad Mynach with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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 procure Ystrad Mynach 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 unsuccessful correspondence with the landlord of her first floor apartment in Ystrad Mynach, Millie started the lease extension process as the eighty year mark was swiftly advancing. The lease extension was finalised in November 2010. The landlord’s fees were restricted to approximately 600 pounds.
Last year we were e-mailed by Dr S Edwards , who was assigned a lease of a garden flat in Ystrad Mynach in March 2008. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable properties in Ystrad Mynach with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded in 2098. Taking into account 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
In 2013 we were contacted by Mr A Peterson who, having owned a first floor apartment in Ystrad Mynach in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Ystrad Mynach with a long lease were worth £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease came to a finish in 2087. Considering the 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.