When it comes to residential leasehold premises in Abersoch, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Abersoch with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Abersoch with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake Abersoch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Oscar owned a conversion apartment in Abersoch on the market with a lease of a little over 72 years left. Oscar on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Christmas we were e-mailed by Mr and Mrs. S Thompson , who purchased a basement apartment in Abersoch in April 1995. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable properties in Abersoch with a long lease were worth £171,800. The mid-range ground rent payable was £55 billed yearly. The lease ended on 20 February 2075. Considering the 50 years left we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including expenses.
Mrs H Sánchez was assigned a lease of a studio apartment in Abersoch in November 2004. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Abersoch with a long lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease finished on 3 April 2095. Given that there were 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.