When it comes to long leasehold property in Aberystwyth, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Aberystwyth with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under eighty years left, under the current legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Aberystwyth with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Aberystwyth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aberystwyth valuers.
In the wake of 6 months of unsuccessful correspondence with the landlord of her two bedroom flat in Aberystwyth, Naomi commenced the lease extension process as the 80 year threshold was quickly approaching. The transaction was finalised in May 2010. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. Y Thomas who, having took over the lease of a one bedroom apartment in Aberystwyth in February 1998. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Aberystwyth with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease expired in 2079. Having 55 years unexpired we approximated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
Last year we were contacted by Ms Jade Miller , who bought a garden flat in Aberystwyth in January 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Aberystwyth with a long lease were worth £295,000. The average ground rent payable was £50 collected quarterly. The lease terminated on 15 September 2099. Considering the 75 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.