The re-sale value of a leasehold property in Aberystwyth is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation entitles Aberystwyth qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Aberystwyth,the lease extension lawyers that we work with will always be willing 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 Autumn Alex, started to get close to the eighty-year mark with the lease on his studio apartment in Aberystwyth. Having bought his home 19 years ago, the lease term was of minimal concern. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Alex was able to extend his lease just under the wire last August. Alex and the landlord ultimately settled on an amount of £5,500 . If the lease had slipped below 80 years, the figure would have increased by at least £1,025.
Dr Y James acquired a purpose-built apartment in Aberystwyth in June 2000. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Aberystwyth with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded on 13 September 2089. Given that there were 64 years as a residual term we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including legals.
Dr D Sánchez took over the lease of a first floor flat in Aberystwyth in June 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Aberystwyth with 100 year plus lease were valued around £189,000. The average amount of ground rent was £55 billed every twelve months. The lease expired on 13 April 2078. Given that there were 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.