Unfortunately that a Aberystwyth residential lease is a deteriorating 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 Aberystwyth property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Aberystwyth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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 conveyancing solicitors that we work with handle Aberystwyth 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 lawyer we work with provide it.
Off the back of lengthy discussions with the landlord of her one bedroom flat in Aberystwyth, Danielle commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in January 2007. The freeholder’s charges were negotiated to slightly above 700 pounds.
Mrs Lily Cooper owned a ground floor flat in Aberystwyth in May 1995. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable residencies in Aberystwyth with 100 year plus lease were worth £225,800. The average ground rent payable was £60 invoiced annually. The lease elapsed on 24 June 2085. Considering the 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus professional charges.
In 2014 we were approached by Mrs C Parker who, having bought a purpose-built flat in Aberystwyth in July 2007. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Aberystwyth with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed on 2 September 2105. Taking into account 80 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.