As the the remaining lease term of a Aberporth residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Aberporth will qualify for this right; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered 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 residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service gives you increased control over the value of your Aberporth leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold owner of a high value flat in Aberporth on the market with a lease of fraction over 59 years remaining. Luke informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were phoned by Mr Zachary Moreau who, having was assigned a lease of a one bedroom flat in Aberporth in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Aberporth with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected monthly. The lease expired in 2101. Having 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Last Autumn we were approach by Mr Jack Pérez , who bought a one bedroom apartment in Aberporth in October 2011. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Aberporth with a long lease were worth £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease concluded on 7 March 2090. Given that there were 65 years left we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of expenses.