Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Aberystwyth. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Aberystwyth have the right to extend the lease for an additional 90 years under legislation. Please give due consideration before putting off your Aberystwyth lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold properties in Aberystwyth with in excess of 100 years remaining on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Aberystwyth,the lease extension experts 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 Aberystwyth valuers.
Subsequent to protracted negotiations with the landlord of her ground floor flat in Aberystwyth, Tia started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension was finalised in January 2006. The freeholder’s charges were restricted to approximately 450 pounds.
Ms Paige Martin was assigned a lease of a purpose-built flat in Aberystwyth in February 2007. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar homes in Aberystwyth with a long lease were in the region of £210,000. The average ground rent payable was £50 billed yearly. The lease came to a finish in 2101. Considering the 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2012 we were called by Mr and Mrs. S Kelly who, having acquired a purpose-built flat in Aberystwyth in March 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Aberystwyth with a long lease were worth £275,000. The average ground rent payable was £65 invoiced yearly. The lease concluded on 6 June 2090. Considering the 68 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.