Abbey Wood Lease Extension - Free Consultation

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Why you should commence your Abbey Wood lease extension

Why you should commence your Abbey Wood lease extension today:

Increase your lease and increase your Abbey Wood property value

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

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not finance a property with a short lease

Banks and Building Societies are less likely to issue a mortgage on a residential property in Abbey Wood with a short lease. Some lenders simply refuse to lend on leases with below 75 years remaining.

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.
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.
TSB Mortgage term plus 30 years subject to an overall minimum term of 70 years
The Mortgage Works Minimum unexpired lease term is 70 years with 30 years remaining at the end of the mortgage term. Report to the issuing office if the lease term is shorter than that stated within the Offer and has less than 100 years remaining.(There is no requirement to report if the lease term is lower than that stated on the Offer but still has 100 years or more to run, or if the lease term is longer than that stated on the Offer).

NEW BUILD PROPERTIES (includes office conversions)
The following are not acceptable:
- The unexpired lease term on a new build flat is less than 125 years
- The unexpired lease term on a new build house is less than 250 years
- Starting ground rent is more than 0.1% of the property value
The lease must be amended to comply with the above. If not the case cannot proceed. Please advise us where the case cannot proceed.
Ground rents and event fees:
Ground rent and other event fees must be reasonable at all times during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised. However, unreasonable multipliers of ground rent will not be permitted, for example, doubling every 5, 10 or 15 years. These must be referred to us and we will advise if our mortgage offer remains valid. If you are unsure as to whether the terms of a lease are unreasonable, please refer the details to us.
Yorkshire 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.

Why use us for your lease extension in Abbey Wood?

Lease extensions in Abbey Wood can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.

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 in-depth market knowledge 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.

Abbey Wood Lease Extension Case Summaries:

Grace, Abbey Wood, South East London,

Following protracted correspondence with the freeholder of her ground floor flat in Abbey Wood, Grace initiated the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in February 2009. The landlord’s charges were kept to an absolute minimum.

Abbey Wood case:

In 2012 we were contacted by Mrs D Díaz who, having purchased a newly refurbished flat in Abbey Wood in February 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Abbey Wood with a long lease were in the region of £201,200. The average ground rent payable was £55 collected annually. The lease concluded in 2075. Considering the 56 years left we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.

Decision in Bexley

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 was in relation to 13 flats. The unexpired term as at the valuation date was 76 years.