The only way is down when it comes to Aberporth lease terms. Aberporth properties that have a residual term shorter than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will increase.
Leasehold premises in Aberporth with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you enhanced 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 decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her two bedroom apartment in Aberporth, Sophie started the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in March 2008. The freeholder’s costs were restricted to a tad over five hundred pounds.
In 2012 we were contacted by Ms Isabella Mitchell who, having moved into a garden apartment in Aberporth in May 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Aberporth with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed monthly. The lease finished on 5 February 2078. Considering the 52 years outstanding we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
In 2013 we were called by Ms Alicia Clark who, having purchased a studio apartment in Aberporth in February 2011. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative properties in Aberporth with a long lease were worth £285,000. The average ground rent payable was £45 collected quarterly. The lease ran out on 14 July 2098. Taking into account 72 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.