For those whose Abertridwr property is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Abertridwr,the lease extension solicitors 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.
Half a year ago Lucas, came seriously close to the eighty-year mark with the lease on his ground floor apartment in Abertridwr. Having purchased his home twenty years ago, the lease term was of no bearing. Luckily, he realised he needed to take steps soon on a lease extension. Lucas extended the lease just ahead of time last July. Lucas and the freeholder via the managing agents in the end settled on sum of £6,000 . If he not met the deadline, the amount would have gone up by at least £1,050.
Last October we were contacted by Mr and Mrs. I Martin , who took over the lease of a garden apartment in Abertridwr in January 1997. The question was if we could estimate the premium could be for a 90 year lease extension. Similar flats in Abertridwr with an extended lease were worth £280,000. The average ground rent payable was £55 collected quarterly. The lease finished on 9 July 2104. Given that there were 78 years remaining we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2014 we were approached by Mr and Mrs. T Lewis who, having completed a first floor flat in Abertridwr in June 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable flats in Abertridwr with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2083. Considering the 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.