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. Most owners of residential leasehold property in Aberporth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Aberporth you would be well advised to check if your lease has between 70 and 90 years remaining. There are good reasons why a Aberporth leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Aberporth with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Aberporth can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Aberporth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her ground floor apartment in Aberporth, Courtney initiated the lease extension process as the 80 year mark was rapidly approaching. The transaction was finalised in March 2008. The landlord’s charges were negotiated to approximately 700 GBP.
Mrs Holly Garcia bought a purpose-built apartment in Aberporth in September 2008. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Aberporth with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease terminated on 21 August 2084. Considering the 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of fees.
Last year we were approach by Mr N Vincent , who took over the lease of a basement flat in Aberporth in January 2012. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Identical flats in Aberporth with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2104. Having 78 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.