The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Abertridwr can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Abertridwr lease extension. Shelving the costs today simply increases the amount you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same 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 many years in the future.
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Abertridwr can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Abertridwr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy correspondence with the freeholder of her two bedroom flat in Abertridwr, Robyn initiated the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in January 2015. The landlord’s fees were negotiated to a tad over 650 pounds.
In 2010 we were contacted by Dr Sarah Brooks who, having purchased a basement flat in Abertridwr in April 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Abertridwr with a long lease were worth £200,800. The average amount of ground rent was £65 collected yearly. The lease finished on 28 July 2085. Considering the 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.
Mr and Mrs. B Phillips took over the lease of a newly refurbished apartment in Abertridwr in April 2005. We are asked if we could estimate the price could be for a 90 year lease extension. Similar homes in Abertridwr with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 21 July 2096. Taking into account 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.