Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Aberdaron. Clearly, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Aberdaron have the right to extend the lease for an additional ninety years in accordance with statute. Do give careful attention before putting off your Aberdaron lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Aberdaron with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Aberdaron 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 conveyancing solicitor we work with provide it.
Owen was the the leasehold proprietor of a studio flat in Aberdaron being sold with a lease of just over 59 years remaining. Owen informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last year we were e-mailed by Dr Samuel Fournier , who took over the lease of a ground floor flat in Aberdaron in March 1995. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparative premises in Aberdaron with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 billed monthly. The lease ended in 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of legals.
In 2009 we were approached by Dr E Ali who, having was assigned a lease of a first floor flat in Aberdaron in March 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Aberdaron with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 collected per annum. The lease finished on 22 September 2076. Having 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including professional charges.