The re-sale value of a leasehold property in Abbey Wood depends on how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation enables Abbey Wood qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Abbey Wood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Kyle was the the leasehold proprietor of a high value flat in Abbey Wood on the market with a lease of a few days over sixty years remaining. Kyle informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle procured expert advice and secured satisfactory resolution informally and readily saleable.
Mrs Freya Wright bought a one bedroom flat in Abbey Wood in March 2004. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Abbey Wood with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 invoiced yearly. The lease expired in 2090. Having 64 years outstanding we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
An example of a Lease Extension matter before the tribunal for a Abbey Wood flat 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 term was 76 years.