Aberystwyth leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Aberystwyth will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Aberystwyth with more than one hundred years remaining 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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Aberystwyth,the lease extension experts that we work with will always be prepared 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.
Last October Jack, came dangerously close to the eighty-year mark with the lease on his leasehold flat in Aberystwyth. Having purchased his property twenty years previously, the length of the lease was of no concern. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Jack extended the lease just under the wire last May. Jack and the freeholder subsequently settled on sum of £6,000 . If he not met the deadline, the amount would have increased by at least £1,075.
Mr and Mrs. T Dupont completed a one bedroom apartment in Aberystwyth in November 2009. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative properties in Aberystwyth with an extended lease were worth £206,200. The mid-range ground rent payable was £55 billed annually. The lease finished in 2081. Considering the 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including fees.
Last Christmas we were phoned by Mr and Mrs. L Dupont , who acquired a one bedroom apartment in Aberystwyth in July 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Aberystwyth with a long lease were valued about £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended in 2101. Given that there were 76 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.