The market value of a leasehold property in Abbey Wood is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year mark. Leasehold Reform legislation enables Abbey Wood qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Abbey Wood with over one hundred 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB |
Engaging our service will provide you enhanced control over the value of your Abbey Wood 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 wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold proprietor of a 2 bedroom apartment in Abbey Wood being marketed with a lease of fraction over fifty eight years left. Tommy informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
Last April we were phoned by Mrs Kirsty Allen , who completed a one bedroom flat in Abbey Wood in March 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Abbey Wood with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease concluded in 2097. Given that there were 71 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension decision 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 remaining number of years on the lease was 76 years.