Unfortunately that a Ystradgynlais residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Ystradgynlais property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Ystradgynlais will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Ystradgynlais with more than one hundred 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Ystradgynlais,the lease extension lawyers 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.
Off the back of unsuccessful negotiations with the landlord of her two bedroom apartment in Ystradgynlais, Niamh commenced the lease extension process as the 80 year mark was swiftly coming. The legal work completed in May 2008. The freeholder’s costs were negotiated to approximately 450 GBP.
Last Winter we were e-mailed by Dr Jackson Norbert , who purchased a purpose-built flat in Ystradgynlais in March 2006. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparable properties in Ystradgynlais with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 invoiced annually. The lease came to a finish in 2083. Taking into account 58 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
Ms Samantha Green completed a one bedroom flat in Ystradgynlais in January 2009. We are asked if we could estimate the price would be for a 90 year lease extension. Identical flats in Ystradgynlais with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out on 18 August 2103. Given that there were 78 years unexpired we calculated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of costs.