The market value of Aberystwyth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you better control over the value of your Aberystwyth leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her one bedroom flat in Aberystwyth, Naomi started the lease extension process as the 80 year mark was fast approaching. The legal work was concluded in September 2010. The freeholder’s costs were kept to an absolute minimum.
Ms B Petit took over the lease of a ground floor apartment in Aberystwyth in March 2005. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar properties in Aberystwyth with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2087. Given that there were 61 years remaining we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus fees.
Ms J Phillips bought a garden apartment in Aberystwyth in May 1995. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable properties in Aberystwyth with an extended lease were valued about £171,800. The average ground rent payable was £55 collected annually. The lease end date was on 26 September 2076. Given that there were 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of fees.