It’s a harsh truth that a Abbey Wood residential lease is a deteriorating 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 deflation being disguised by increases in the Abbey Wood property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Abbey Wood 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 timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Abbey Wood can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 dealing with 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.
Off the back of unsuccessful negotiations with the freeholder of her leasehold flat in Abbey Wood, Naomi commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction completed in March 2005. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. E David acquired a first floor apartment in Abbey Wood in June 2012. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in Abbey Wood with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish on 2 April 2105. Given that there were 79 years remaining we calculated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 plus legals.
An example of a Lease Extension decision for a Abbey Wood residence 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 residue of the current lease was 76 years.