The value of Ystradgynlais leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than eighty years
Leasehold properties in Ystradgynlais with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Ystradgynlais,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 experience and the close ties they enjoy with Ystradgynlais valuers.
After lengthy negotiations with the freeholder of her two bedroom apartment in Ystradgynlais, Ella commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in March 2010. The landlord’s costs were restricted to about 500 pounds.
Last Winter we were e-mailed by Mr and Mrs. G Khan , who completed a one bedroom apartment in Ystradgynlais in March 2006. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable premises in Ystradgynlais with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected per annum. The lease lapsed in 2095. Considering the 70 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
In 2010 we were approached by Mr S Mitchell who, having took over the lease of a ground floor apartment in Ystradgynlais in July 2007. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative homes in Ystradgynlais with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed in 2084. Considering the 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of costs.