Abertridwr leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Abertridwr residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Abertridwr you would be well advised to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Abertridwr flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Abertridwr with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Last Spring Sam, started to get near to the 80-year threshold with the lease on his first floor apartment in Abertridwr. In buying his home two decades ago, the length of the lease was of little importance. Fortunately, he realised he needed to take steps soon on a lease extension. Sam extended the lease just ahead of time in March. Sam and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £975.
Mr Rory Harris moved into a purpose-built flat in Abertridwr in June 1999. The question was if we could estimate the premium could be for a ninety year lease extension. Identical flats in Abertridwr with an extended lease were worth £261,600. The average amount of ground rent was £60 collected annually. The lease lapsed in 2078. Given that there were 52 years remaining we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.
In 2011 we were called by Mr Austin Scott who, having was assigned a lease of a ground floor apartment in Abertridwr in April 1998. We are asked if we could approximate the price could be to prolong the lease by ninety years. Similar residencies in Abertridwr with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished in 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including fees.