Unfortunately that a Aberporth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Aberporth property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Aberporth will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Aberporth with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with handle Aberporth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Kian owned a conversion apartment in Aberporth being marketed with a lease of a few days over 72 years left. Kian on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr T Torres bought a basement flat in Aberporth in August 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Aberporth with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected monthly. The lease ended in 2105. Considering the 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
Mrs I Adams acquired a garden apartment in Aberporth in August 1998. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical residencies in Aberporth with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease expired in 2094. Given that there were 69 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.