Aberporth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Aberporth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Aberporth you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Aberporth flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced 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 wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her purpose-built flat in Aberporth, Imogen started the lease extension process as the eighty year threshold was swiftly advancing. The lease extension completed in November 2006. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. T Lewis acquired a newly refurbished flat in Aberporth in June 2000. The question was if we could approximate the premium would be for a ninety year lease extension. Identical flats in Aberporth with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 collected yearly. The lease ended on 27 July 2083. Taking into account 59 years outstanding we approximated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus expenses.
Dr Elijah Morel completed a first floor apartment in Aberporth in October 2001. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable homes in Aberporth with an extended lease were valued around £205,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated on 28 April 2103. Considering the 79 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.