The market value of Aberporth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
Leasehold properties in Aberporth with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Aberporth leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her one bedroom apartment in Aberporth, Millie started the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work was finalised in September 2010. The freeholder’s costs were negotiated to under 650 GBP.
Ms Rebecca Cook took over the lease of a ground floor apartment in Aberporth in August 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Aberporth with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected monthly. The lease lapsed on 15 June 2101. Having 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Last November we were approach by Mr H Harris , who took over the lease of a newly refurbished flat in Aberporth in July 2001. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar flats in Aberporth with a long lease were valued about £250,400. The mid-range ground rent payable was £65 billed every twelve months. The lease expired in 2090. Having 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of legals.