The value of Aberystwyth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Aberystwyth with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Aberystwyth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the landlord of her studio apartment in Aberystwyth, Georgia initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was concluded in March 2006. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. P François who, having purchased a garden flat in Aberystwyth in February 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Aberystwyth with 100 year plus lease were worth £275,000. The average ground rent payable was £45 invoiced annually. The lease elapsed on 6 June 2095. Considering the 69 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. E Ramírez completed a recently refurbished flat in Aberystwyth in August 2006. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Aberystwyth with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected monthly. The lease came to a finish on 14 August 2084. Considering the 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.