Unfortunately that a Aberdare residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Aberdare property market.Where your lease has approximately ninety years left, you should start considering 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 slips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Aberdare will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Aberdare with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| TSB |
The lawyers that we work with undertake Aberdare 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.
Two years ago Blake, started to get close to the 80-year threshold with the lease on his basement flat in Aberdare. In buying his home two decades ago, the unexpired term was of little relevance. Luckily, he recognised he needed to take steps soon on a lease extension. Blake arranged for a lease extension just in the nick of time in September. Blake and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had dropped below 80 years, the figure would have become more exhorbitant by at least £950.
Mrs I Taylor was assigned a lease of a one bedroom flat in Aberdare in January 2005. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Aberdare with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended on 14 November 2100. Given that there were 74 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last year we were called by Mr Jamie Reed , who acquired a studio flat in Aberdare in January 2001. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical flats in Aberdare with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 billed quarterly. The lease finished in 2080. Given that there were 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.