Chances are that if you own a flat in Ystradgynlais you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Ystradgynlais leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Milo, came seriously close to the 80-year threshold with the lease on his basement flat in Ystradgynlais. Having purchased his flat twenty years ago, the unexpired term was of no significance. Fortunately, he recognised he needed to take steps soon on a lease extension. Milo arranged for a lease extension just under the wire last January. Milo and the landlord eventually settled on a premium of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £1,000.
In 2013 we were called by Mrs Courtney Bonnet who, having owned a garden flat in Ystradgynlais in September 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Ystradgynlais with an extended lease were worth £206,200. The average ground rent payable was £60 invoiced yearly. The lease terminated in 2082. Considering the 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
Last Spring we were phoned by Mr and Mrs. F Clark , who owned a purpose-built flat in Ystradgynlais in October 1999. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable homes in Ystradgynlais with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 11 February 2102. Considering the 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.