The re-sale value of a leasehold property in Aberporth is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised in advance of the 80 year threshold. Statute entitles Aberporth qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Aberporth with in excess of one hundred 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Aberporth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her ground floor flat in Aberporth, Francesca initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The transaction was finalised in May 2005. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. N Davis acquired a ground floor apartment in Aberporth in January 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Aberporth with an extended lease were worth £285,000. The average ground rent payable was £45 invoiced quarterly. The lease expired on 11 January 2098. Having 72 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
Mr and Mrs. W Moreau completed a studio apartment in Aberporth in May 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Aberporth with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed on 7 April 2087. Having 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of fees.