The 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 increase materialy once the unexpired lease term is below than 80 years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Aberystwyth can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Aberystwyth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex was the the leasehold proprietor of a 2 bedroom flat in Aberystwyth on the market with a lease of a few days over sixty years unexpired. Alex on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. A Davis moved into a basement apartment in Aberystwyth in November 1997. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable flats in Aberystwyth with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed annually. The lease lapsed on 7 March 2102. Having 76 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last November we were called by Mr and Mrs. A Miller , who was assigned a lease of a purpose-built apartment in Aberystwyth in January 2010. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Aberystwyth with a long lease were in the region of £257,800. The mid-range ground rent payable was £65 collected yearly. The lease terminated on 2 October 2091. Taking into account 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.