When it comes to domestic leasehold premises in Abertridwr, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years remaining. Leasehold owners in Abertridwr with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Abertridwr can be a difficult process. We recommend you obtain guidance from a lawyer 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 a wealth of experience dealing with Abertridwr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben owned a 2 bedroom apartment in Abertridwr being marketed with a lease of a few days over 61 years outstanding. Reuben informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were e-mailed by Ms Kirsty Stewart who, having moved into a one bedroom flat in Abertridwr in July 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Abertridwr with a long lease were worth £250,000. The average ground rent payable was £50 collected annually. The lease came to a finish on 19 February 2094. Given that there were 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. T Parker completed a one bedroom flat in Abertridwr in February 2004. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Abertridwr with a long lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease finished on 24 May 2105. Having 80 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.