Unfortunately that a Abergele residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Abergele property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Abergele will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Abergele with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Abergele leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Harvey, started to get close to the eighty-year mark with the lease on his one bedroom flat in Abergele. Having purchased his property two decades ago, the lease term was of little interest. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Harvey arranged for a lease extension just in the nick of time in June. Harvey and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slid below eighty years, the figure would have escalated by at least £1,050.
In 2013 we were contacted by Mr and Mrs. U Clarke who, having moved into a newly refurbished flat in Abergele in July 2001. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative residencies in Abergele with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected per annum. The lease terminated on 25 November 2103. Having 78 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last year we were approach by Mr Connor Nguyen , who completed a garden flat in Abergele in May 2008. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Abergele with a long lease were valued around £191,000. The average amount of ground rent was £65 invoiced yearly. The lease expiry date was in 2083. Having 58 years outstanding we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.