When it comes to long leasehold premises in Aberporth, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Aberporth with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you better control over the value of your Aberporth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jayden, started to get close to the 80-year mark with the lease on his studio apartment in Aberporth. Having bought his home 18 years previously, the unexpired term was of no relevance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Jayden extended the lease at the eleventh hour in July. Jayden and the landlord ultimately settled on a premium of £6,000 . If the lease had dropped below 80 years, the amount would have gone up by a minimum £1,050.
Last Spring we were e-mailed by Mr A Phillips , who took over the lease of a basement flat in Aberporth in February 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Aberporth with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed on 6 August 2090. Given that there were 64 years remaining we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
In 2009 we were phoned by Mr and Mrs. A Lee who, having completed a purpose-built flat in Aberporth in June 2009. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable residencies in Aberporth with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed in 2079. Given that there were 53 years unexpired we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.