Unfortunately that a Abergele residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Abergele property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Abergele will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Abergele can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Abergele lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months David, started to get near to the 80-year threshold with the lease on his studio flat in Abergele. In buying his flat two decades ago, the unexpired term was of no concern. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. David arranged for a lease extension just in the nick of time last August. David and the landlord subsequently settled on a premium of £6,000 . If he had missed the deadline, the price would have gone up by at least £1,150.
Last Spring we were approach by Mr and Mrs. Y Vincent , who completed a purpose-built flat in Abergele in March 1995. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative homes in Abergele with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 billed annually. The lease came to a finish on 17 January 2087. Taking into account 62 years unexpired we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of fees.
Last Autumn we were phoned by Dr Charlotte Walker , who was assigned a lease of a studio flat in Abergele in January 2005. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar residencies in Abergele with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed yearly. The lease end date was on 11 June 2098. Having 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.