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Top reasons for Abbey Wood lease extension

Main reasons to commence your Abbey Wood lease extension today:

A Abbey Wood leasehold property depreciates with the years remaining on the lease.

Abbey Wood residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.

Abbey Wood property with a lease extension has roughly the same value as a freehold

Leasehold properties in Abbey Wood with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not grant a mortgage on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Birmingham Midshires 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.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

What makes us experts in Abbey Wood lease extensions?

Lease extensions in Abbey Wood can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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.

Abbey Wood Lease Extension Example Cases:

Blake, Abbey Wood, South East London,

Blake owned a studio apartment in Abbey Wood being marketed with a lease of fraction over 72 years outstanding. Blake informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Abbey Wood case:

Last Spring we were phoned by Mr and Mrs. I Ricardo , who completed a studio flat in Abbey Wood in May 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Abbey Wood with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish on 12 July 2077. Having 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.

Decision in Bexley

An example of a Lease Extension matter before the tribunal 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 remaining number of years on the lease was 76 years.