The market value of a leasehold property in Aberdare is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be concluded well before the 80 year cut off point. Statute entitles Aberdare qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 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 |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you better control over the value of your Aberdare leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad was the the leasehold proprietor of a conversion apartment in Aberdare being sold with a lease of fraction over 59 years left. Muhammad on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were called by Mr Henry Sharif who, having moved into a garden flat in Aberdare in September 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Aberdare with 100 year plus lease were worth £173,800. The average ground rent payable was £65 invoiced annually. The lease end date was in 2081. Given that there were 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.
Mr Joseph Rodríguez completed a garden flat in Aberdare in January 1999. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable flats in Aberdare with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease expired in 2092. Considering the 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.