Aberystwyth 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 the lease becomes more expensive. It is the case that most Aberystwyth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Aberystwyth you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Aberystwyth with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Aberystwyth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aberystwyth valuers.
Off the back of protracted discussions with the freeholder of her ground floor apartment in Aberystwyth, Emma commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension completed in February 2013. The freeholder’s charges were restricted to a tad over 600 pounds.
Last month we were phoned by Mr and Mrs. J Fournier , who bought a ground floor apartment in Aberystwyth in February 2009. The question was if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Aberystwyth with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended on 14 March 2104. Considering the 78 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
In 2012 we were called by Dr W Collins who, having took over the lease of a basement flat in Aberystwyth in April 2005. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative flats in Aberystwyth with a long lease were in the region of £267,600. The average ground rent payable was £65 collected monthly. The lease finished in 2093. Having 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including expenses.