Chances are that if you own a flat in Aberbargoed you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aberbargoed can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Aberbargoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her leasehold apartment in Aberbargoed, Gemma commenced the lease extension process as the eighty year deadline was quickly nearing. The transaction was concluded in March 2007. The freeholder’s costs were restricted to under 450 pounds.
Mr and Mrs. G Petit completed a basement apartment in Aberbargoed in November 2004. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Aberbargoed with 100 year plus lease were valued about £198,400. The average amount of ground rent was £65 invoiced quarterly. The lease expired in 2085. Given that there were 59 years outstanding we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
Last Autumn we were approach by Dr Daniel Peterson , who acquired a one bedroom apartment in Aberbargoed in February 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar homes in Aberbargoed with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2096. Taking into account 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.