When it comes to long leasehold property in Aberbargoed, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Leasehold owners in Aberbargoed with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has below 80 years outstanding, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Aberbargoed with over 100 years outstanding on the lease are sometimes 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 reversionary interest unless savings on ground rent and service 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Aberbargoed,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aberbargoed valuers.
Ryan was the the leasehold owner of a studio flat in Aberbargoed being marketed with a lease of fraction over sixty years left. Ryan informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Ryan to invoke his statutory right. Ryan procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last month we were contacted by Mr and Mrs. D Petit , who moved into a studio flat in Aberbargoed in November 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Aberbargoed with a long lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed in 2101. Taking into account 76 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. C Richardson completed a studio apartment in Aberbargoed in February 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in Aberbargoed with an extended lease were in the region of £176,200. The average ground rent payable was £65 billed quarterly. The lease concluded on 26 May 2081. Given that there were 56 years left we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.