Abertridwr leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Abertridwr will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Abertridwr with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Abertridwr,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Abertridwr valuers.
Tyler owned a conversion apartment in Abertridwr on the market with a lease of a little over fifty eight years remaining. Tyler informally spoke with his landlord being a well known London-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 on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr N Phillips acquired a purpose-built flat in Abertridwr in May 2011. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable premises in Abertridwr with a long lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 21 October 2088. Given that there were 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.
In 2012 we were approached by Dr L King who, having took over the lease of a recently refurbished apartment in Abertridwr in August 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Abertridwr with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2099. Considering the 74 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.