When it comes to residential leasehold property in Abersoch, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Abersoch with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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 |
| 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 gives you better control over the value of your Abersoch leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Benjamin, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Abersoch. Having bought his property two decades ago, the unexpired term was of minimal importance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Benjamin arranged for a lease extension at the eleventh hour in July. Benjamin and the landlord ultimately agreed on a premium of £6,000 . If the lease had slid below eighty years, the premium would have escalated by at least £1,050.
Mr and Mrs. U Martinez bought a studio flat in Abersoch in January 1995. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical properties in Abersoch with an extended lease were worth £198,800. The average ground rent payable was £55 billed yearly. The lease terminated in 2081. Taking into account 55 years as a residual term we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
Mr and Mrs. S Clark purchased a first floor apartment in Abersoch in July 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Abersoch with a long lease were worth £300,000. The average ground rent payable was £50 collected quarterly. The lease ran out in 2101. Considering the 75 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.