Unfortunately that a Aberporth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Aberporth property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Most flat owners in Aberporth will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Aberporth with over 100 years left 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Aberporth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her basement flat in Aberporth, Natalie started the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was concluded in January 2015. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mrs N Morgan who, having was assigned a lease of a purpose-built apartment in Aberporth in May 1996. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Aberporth with a long lease were worth £218,400. The average ground rent payable was £60 collected every twelve months. The lease concluded in 2084. Having 59 years left we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.
Last Christmas we were contacted by Mr A Carter , who purchased a one bedroom flat in Aberporth in January 1997. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Aberporth with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2104. Taking into account 79 years remaining we calculated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including costs.