Unfortunately that a Abersoch residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Abersoch property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Abersoch 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 qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Abersoch with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| 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. |
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 conveyancing solicitor we work with provide it.
Last year Alfie, started to get close to the eighty-year threshold with the lease on his first floor flat in Abersoch. In buying his home two decades ago, the unexpired term was of no significance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Alfie was able to extend his lease just ahead of time last June. Alfie and the landlord in the end settled on an amount of £5,000 . If the lease had slid lower than 80 years, the amount would have increased by a minimum £1,075.
In 2010 we were contacted by Mr and Mrs. P Edwards who, having owned a one bedroom flat in Abersoch in September 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar homes in Abersoch with an extended lease were in the region of £267,600. The average ground rent payable was £65 collected annually. The lease ended in 2093. Having 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of expenses.
Ms R Petit bought a basement flat in Abersoch in March 1996. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar properties in Abersoch with an extended lease were valued around £206,200. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2082. Given that there were 56 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.