Aberystwyth leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Aberystwyth will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| 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. |
| 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 |
Lease extensions in Aberystwyth can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Aberystwyth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the landlord of her one bedroom apartment in Aberystwyth, Ellie started the lease extension process as the 80 year deadline was quickly approaching. The lease extension was concluded in November 2007. The landlord’s charges were restricted to slightly above 550 GBP.
Dr Stanley Ali took over the lease of a purpose-built apartment in Aberystwyth in March 1997. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Aberystwyth with a long lease were worth £208,600. The mid-range ground rent payable was £60 billed annually. The lease finished in 2081. Considering the 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.
Last Summer we were contacted by Mr and Mrs. U James , who moved into a basement apartment in Aberystwyth in November 2005. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Aberystwyth with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 billed quarterly. The lease concluded on 5 May 2101. Considering the 77 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.