Aberdovey leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Aberdovey will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent 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 many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aberdovey can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 a wealth of experience procuring Aberdovey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley was the the leasehold owner of a studio flat in Aberdovey being marketed with a lease of just over 59 years left. Stanley informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Summer we were e-mailed by Dr Rosie Pérez , who completed a first floor flat in Aberdovey in April 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Aberdovey with 100 year plus lease were valued around £227,800. The average amount of ground rent was £45 collected annually. The lease ran out on 3 May 2091. Taking into account 65 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Last year we were phoned by Ms Louise Bonnet , who bought a studio flat in Aberdovey in September 1997. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable premises in Aberdovey with an extended lease were in the region of £270,000. The average ground rent payable was £55 billed monthly. The lease lapsed in 2102. Considering the 76 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.