Aberporth 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. Legislation has been in place for sometime now which entitles qualifying Aberporth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Aberporth you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Aberporth flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Aberporth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aberporth valuers.
18 months ago Ryan, started to get close to the 80-year threshold with the lease on his one bedroom flat in Aberporth. In buying his property 19 years previously, the length of the lease was of little significance. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Ryan arranged for a lease extension at the eleventh hour last June. Ryan and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had dropped to less than 80 years, the price would have increased by at least £950.
In 2013 we were called by Dr Henry Harris who, having was assigned a lease of a purpose-built flat in Aberporth in March 2010. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Aberporth with a long lease were valued about £270,000. The average ground rent payable was £65 invoiced every twelve months. The lease ran out on 16 July 2094. Given that there were 68 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Mr Freddie Carter moved into a studio apartment in Aberporth in May 1997. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Aberporth with 100 year plus lease were valued about £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2083. Having 57 years remaining we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus professional charges.