Abbey Wood leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Leasehold owners in Abbey Wood will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Abbey Wood with over 100 years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Abbey Wood,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Abbey Wood valuers.
Lewis owned a conversion flat in Abbey Wood on the market with a lease of fraction over 59 years unexpired. Lewis informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2010 we were e-mailed by Ms Katherine Morel who, having bought a purpose-built apartment in Abbey Wood in October 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Abbey Wood with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 collected per annum. The lease ran out in 2076. Considering the 51 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
An example of a Lease Extension decision for a Abbey Wood residence is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired residue of the current lease was 76 years.