Ystradgynlais leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Ystradgynlais tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Ystradgynlais you should check if your lease has between seventy and 90 years left. There are good reasons why a Ystradgynlais flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Ystradgynlais with more than 100 years remaining 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Ystradgynlais,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ystradgynlais valuers.
Owen was the the leasehold proprietor of a 2 bedroom apartment in Ystradgynlais being sold with a lease of a few days over fifty eight years outstanding. Owen on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. N Martin who, having took over the lease of a recently refurbished flat in Ystradgynlais in October 1999. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Ystradgynlais with an extended lease were in the region of £248,000. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed on 6 November 2088. Given that there were 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including expenses.
Last Summer we were called by Mr and Mrs. C David , who took over the lease of a first floor apartment in Ystradgynlais in June 2003. We are asked if we could approximate the price could be for a ninety year lease extension. Similar residencies in Ystradgynlais with a long lease were valued around £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 15 April 2077. Given that there were 52 years left we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.