The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Abbey Wood have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give careful consideration before delaying your Abbey Wood lease extension. Putting off the costs now simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold premises in Abbey Wood with over 100 years remaining 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Abbey Wood can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 a wealth of experience procuring Abbey Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam owned a high value flat in Abbey Wood on the market with a lease of just over 59 years unexpired. Adam informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Last year we were phoned by Dr Abigail Nguyen , who acquired a ground floor flat in Abbey Wood in January 1995. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Abbey Wood with an extended lease were in the region of £171,800. The average ground rent payable was £55 collected every twelve months. The lease finished in 2075. Considering the 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.
An example of a Lease Extension decision for a Abbey Wood premises 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 as at the valuation date was 76 years.