Top reasons for Aberystwyth lease extension

Why you should start your Aberystwyth lease extension today:

A Aberystwyth lease depreciates with the years remaining on the lease.

Aberystwyth leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Aberystwyth will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Aberystwyth with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may not finance a property on a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Aberystwyth lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you better control over the value of your Aberystwyth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Aberystwyth Lease Extension Example Cases:

Bethany, Aberystwyth, Aberaeron,

After protracted discussions with the landlord of her purpose-built apartment in Aberystwyth, Bethany commenced the lease extension process as the 80 year deadline was rapidly approaching. The lease extension completed in February 2008. The landlord’s fees were kept to an absolute minimum.

Aberystwyth case:

Mr P Williams acquired a one bedroom apartment in Aberystwyth in January 2002. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative residencies in Aberystwyth with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed yearly. The lease finished on 7 June 2080. Considering the 54 years remaining we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of expenses.

Aberystwyth case:

In 2014 we were phoned by Mr and Mrs. K Wood who, having purchased a purpose-built flat in Aberystwyth in September 2009. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Aberystwyth with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ended on 8 June 2100. Taking into account 74 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.