It’s an underpublicised truth that a Aberporth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Aberporth property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Aberporth will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Aberporth with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Halifax | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Aberporth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Seth was the the leasehold owner of a studio flat in Aberporth on the market with a lease of just over fifty eight years left. Seth on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2013 we were contacted by Mrs O Alexander who, having acquired a one bedroom flat in Aberporth in February 2004. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparative premises in Aberporth with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed in 2087. Considering the 61 years left we calculated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including expenses.
Mr Andrew Rodríguez acquired a one bedroom flat in Aberporth in May 2010. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable flats in Aberporth with 100 year plus lease were in the region of £166,800. The average ground rent payable was £50 billed annually. The lease terminated on 19 April 2076. Considering the 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.