Aberbargoed leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Aberbargoed tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Aberbargoed you must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Aberbargoed flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Aberbargoed with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Aberbargoed,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aberbargoed valuers.
Trailing protracted correspondence with the freeholder of her garden flat in Aberbargoed, Jessica started the lease extension process as the eighty year threshold was quickly approaching. The legal work completed in March 2008. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. B Walker purchased a studio flat in Aberbargoed in October 2007. The question was if we could approximate the price could be to extend the lease by ninety years. Similar premises in Aberbargoed with a long lease were valued about £200,800. The average ground rent payable was £65 collected annually. The lease elapsed in 2085. Considering the 60 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus costs.
In 2009 we were called by Mr J Jones who, having completed a garden flat in Aberbargoed in July 2004. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Aberbargoed with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out on 10 November 2096. Considering the 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.