When it comes to long leasehold property in Aberystwyth, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Anyone in Aberystwyth with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the current Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Aberystwyth with over one hundred years unexpired 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
Using our service gives you enhanced control over the value of your Aberystwyth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her first floor flat in Aberystwyth, Abigail commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was concluded in April 2006. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. K Reed who, having acquired a garden flat in Aberystwyth in February 2008. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar premises in Aberystwyth with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed annually. The lease end date was on 19 August 2103. Having 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
Last Christmas we were e-mailed by Dr I Hill , who took over the lease of a basement apartment in Aberystwyth in November 2002. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar premises in Aberystwyth with an extended lease were in the region of £267,600. The average amount of ground rent was £65 billed per annum. The lease lapsed on 5 June 2092. Considering the 67 years outstanding we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.