When it comes to domestic leasehold property in Abertridwr, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years remaining. Leasehold owners in Abertridwr with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Abertridwr 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 conveyancer we work with provide it.
During the course of the last few months Ibrahim, came critically near to the 80-year threshold with the lease on his first floor flat in Abertridwr. Having purchased his property 18 years previously, the length of the lease was of little significance. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Ibrahim extended the lease at the eleventh hour in September. Ibrahim and the landlord ultimately agreed on an amount of £5,000 . If he had missed the deadline, the figure would have increased by a minimum £925.
In 2012 we were called by Dr Poppy Rivera who, having was assigned a lease of a ground floor apartment in Abertridwr in March 1998. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical premises in Abertridwr with an extended lease were valued about £237,600. The average amount of ground rent was £45 collected per annum. The lease ran out on 17 February 2092. Taking into account 67 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.
Last month we were e-mailed by Dr R Pérez , who purchased a studio flat in Abertridwr in September 2009. The question was if we could estimate the price could be to extend the lease by an additional years. Comparative premises in Abertridwr with an extended lease were valued about £280,000. The average ground rent payable was £55 billed monthly. The lease lapsed on 13 March 2103. Considering the 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.