When it comes to residential leasehold property in Aberdaron, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Leasehold owners in Aberdaron with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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.
Two years ago Callum, came dangerously close to the 80-year threshold with the lease on his basement flat in Aberdaron. In buying his property 18 years previously, the unexpired term was of no interest. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Callum was able to extend his lease just ahead of time in August. Callum and the landlord subsequently agreed on a premium of £5,500 . If the lease had dropped to less than 80 years, the amount would have escalated by a minimum £1,000.
Mr and Mrs. D Mercier purchased a garden flat in Aberdaron in February 2009. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar properties in Aberdaron with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease lapsed in 2081. Given that there were 56 years outstanding we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of fees.
Dr P Thompson took over the lease of a purpose-built flat in Aberdaron in April 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical residencies in Aberdaron with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2092. Given that there were 67 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.