It’s an underpublicised certainty that a Abersoch residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Abersoch property market.Where your lease has approximately ninety years left, you should start thinking about 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 slips lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Abersoch will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure 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 Winter Aaron, came dangerously close to the 80-year threshold with the lease on his basement apartment in Abersoch. In buying his home two decades ago, the length of the lease was of little significance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Aaron was able to extend his lease just under the wire in April. Aaron and the freeholder via the management company in the end agreed on a premium of £5,500 . If he had missed the deadline, the sum would have become more costly by at least £1,075.
In 2012 we were phoned by Mr and Mrs. K Flores who, having purchased a garden apartment in Abersoch in January 2009. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical residencies in Abersoch with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced per annum. The lease terminated in 2098. Having 72 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
In 2012 we were contacted by Dr Shannon Kelly who, having acquired a studio flat in Abersoch in November 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Identical homes in Abersoch with a long lease were in the region of £233,200. The average ground rent payable was £60 billed monthly. The lease end date was on 22 August 2087. Considering the 61 years remaining we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.