Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Abertridwr. Inevitably, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Abertridwr have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give due consideration before putting off your Abertridwr lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold properties in Abertridwr with more than 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Abertridwr can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 procuring Abertridwr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Austin, started to get close to the eighty-year mark with the lease on his leasehold flat in Abertridwr. In buying his flat two decades ago, the lease term was of no relevance. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Austin was able to extend his lease just under the wire last September. Austin and the landlord subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,100.
Last month we were approach by Mr and Mrs. G Norbert , who completed a newly refurbished apartment in Abertridwr in February 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Abertridwr with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated on 12 June 2098. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2012 we were contacted by Dr Nathan Green who, having completed a one bedroom flat in Abertridwr in March 2010. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Abertridwr with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish in 2078. Given that there were 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of costs.