As the length of the unexpired term of a Aberystwyth residential lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Aberystwyth will meet the qualifying criteria; however a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Aberystwyth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aberystwyth valuers.
Following protracted discussions with the freeholder of her studio flat in Aberystwyth, Alicia initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The transaction was finalised in October 2010. The landlord’s costs were restricted to below 700 GBP.
Mr L Wood was assigned a lease of a studio flat in Aberystwyth in October 1998. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable homes in Aberystwyth with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2079. Taking into account 54 years unexpired we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of legals.
Last Autumn we were approach by Mr and Mrs. B Turner , who purchased a garden flat in Aberystwyth in February 2006. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical premises in Aberystwyth with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed in 2099. Taking into account 74 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.