Chances are that where you own a flat in Aberdaron you actually own a long leasehold interest over your property
Leasehold properties in Aberdaron with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Godiva Mortgages | 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. |
Lease extensions in Aberdaron can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 Aberdaron lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Caleb, started to get close to the 80-year mark with the lease on his purpose- built apartment in Aberdaron. In buying his home 19 years previously, the lease term was of little importance. by good luck, he recognised he needed to take action soon on a lease extension. Caleb arranged for a lease extension just under the wire last March. Caleb and the freeholder in the end agreed on an amount of £5,500 . If he had missed the deadline, the amount would have escalated by at least £950.
Last Spring we were phoned by Mr and Mrs. T González , who owned a one bedroom apartment in Aberdaron in November 2006. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Aberdaron with an extended lease were worth £191,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished in 2084. Given that there were 58 years left we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus fees.
Last Winter we were contacted by Mr Sam Lee , who owned a first floor apartment in Aberdaron in January 2006. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable premises in Aberdaron with an extended lease were worth £250,000. The average ground rent payable was £50 billed yearly. The lease expired in 2095. Considering the 69 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.