Abertridwr leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Abertridwr enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Abertridwr you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Abertridwr with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Elijah was the the leasehold proprietor of a studio apartment in Abertridwr being sold with a lease of a little over 59 years left. Elijah on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Spring we were phoned by Mr Muhammad Vincent , who acquired a first floor flat in Abertridwr in May 1995. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Abertridwr with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease expired in 2105. Considering the 80 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Christmas we were e-mailed by Mr and Mrs. Y Mercier , who completed a studio apartment in Abertridwr in October 1996. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Abertridwr with an extended lease were valued around £200,800. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 3 September 2085. Having 60 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of expenses.