Unfortunately that a Aberporth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Aberporth property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value 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 lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Aberporth with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Aberporth,the lease extension experts 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 Aberporth valuers.
Last October Kian, came precariously close to the eighty-year threshold with the lease on his first floor apartment in Aberporth. Having bought his flat 18 years ago, the unexpired term was of no significance. Thankfully, he realised he needed to take steps soon on Extending the lease. Kian was able to extend his lease just in the nick of time in April. Kian and the freeholder eventually settled on a premium of £6,000 . If the lease had fallen below eighty years, the amount would have become more costly by a minimum £1,075.
Last February we were e-mailed by Mr O González , who bought a first floor flat in Aberporth in February 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Aberporth with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2106. Given that there were 80 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Last Winter we were approach by Mr Felix Lewis , who bought a studio flat in Aberporth in February 1995. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical residencies in Aberporth with an extended lease were worth £275,000. The average amount of ground rent was £45 collected every twelve months. The lease finished on 7 July 2095. Taking into account 69 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.