Abertridwr leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Abertridwr will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Abertridwr leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her studio apartment in Abertridwr, Ashleigh commenced the lease extension process as the eighty year deadline was fast coming. The transaction was finalised in March 2005. The freeholder’s costs were negotiated to under four hundred pounds.
In 2011 we were contacted by Dr Jackson Gunderson who, having was assigned a lease of a studio apartment in Abertridwr in January 2004. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Abertridwr with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 collected annually. The lease finished on 13 October 2094. Taking into account 70 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Christmas we were phoned by Mr and Mrs. S François , who completed a purpose-built flat in Abertridwr in July 2011. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative properties in Abertridwr with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out on 16 March 2074. Having 50 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus professional charges.