On the balance of probabilities where you own a flat in Abersychan you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Abersychan leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her ground floor flat in Abersychan, Naomi initiated the lease extension process as the 80 year deadline was rapidly approaching. The legal work was concluded in March 2015. The freeholder’s charges were negotiated to about 550 pounds.
Mr and Mrs. A Sharif moved into a basement apartment in Abersychan in January 2005. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical flats in Abersychan with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £60 billed quarterly. The lease expiry date was on 16 September 2105. Considering the 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
In 2010 we were contacted by Mr and Mrs. P Michel who, having completed a garden flat in Abersychan in February 2005. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical flats in Abersychan with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 collected annually. The lease lapsed on 25 February 2085. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of fees.