Aberporth 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 your lease becomes more expensive. Most owners of residential leasehold property in Aberporth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Aberporth you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Aberporth with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you increased control over the value of your Aberporth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Rory, came precariously near to the 80-year threshold with the lease on his garden flat in Aberporth. In buying his home two decades ago, the length of the lease was of no significance. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Rory extended the lease at the eleventh hour last August. Rory and the landlord who owned the flat above in the end settled on an amount of £6,000 . If the lease had fallen below eighty years, the amount would have gone up by a minimum £1,000.
Mrs Alicia Vincent took over the lease of a one bedroom flat in Aberporth in March 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Aberporth with an extended lease were valued about £250,400. The average ground rent payable was £65 collected annually. The lease terminated on 26 July 2089. Having 64 years left we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.
Last Winter we were phoned by Mr Gabriel Howard , who took over the lease of a one bedroom flat in Aberporth in October 1995. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative residencies in Aberporth with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected quarterly. The lease elapsed on 16 June 2078. Given that there were 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.