Abertridwr leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Abertridwr will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service will provide you better control over the value of your Abertridwr leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold proprietor of a studio flat in Abertridwr being sold with a lease of a little over sixty years unexpired. Ben informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
Last Autumn we were called by Ms Ashleigh Vincent , who took over the lease of a garden flat in Abertridwr in September 2001. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Abertridwr with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed quarterly. The lease lapsed on 15 August 2102. Given that there were 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last Autumn we were e-mailed by Mr and Mrs. Y Rose , who bought a ground floor flat in Abertridwr in March 2012. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Abertridwr with a long lease were worth £176,200. The average ground rent payable was £65 collected yearly. The lease ended in 2082. Considering the 56 years unexpired we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of expenses.