When it comes to long leasehold property in Aberdare, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Anyone in Aberdare with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aberdare can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge dealing with Aberdare lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her one bedroom flat in Aberdare, Isabel started the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was concluded in March 2006. The landlord’s fees were kept to an absolute minimum.
In 2010 we were approached by Mrs K Moore who, having owned a one bedroom apartment in Aberdare in July 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Aberdare with an extended lease were in the region of £246,800. The average amount of ground rent was £60 billed quarterly. The lease end date was in 2076. Taking into account 50 years left we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus professional charges.
Last Christmas we were e-mailed by Mrs W Díaz , who completed a basement apartment in Aberdare in April 2006. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Aberdare with 100 year plus lease were valued around £208,200. The average ground rent payable was £65 billed yearly. The lease concluded on 14 June 2087. Having 61 years unexpired we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.