Abbey Wood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Abbey Wood tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Abbey Wood you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you enhanced control over the value of your Abbey Wood leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Oliver, came seriously near to the eighty-year threshold with the lease on his studio flat in Abbey Wood. In buying his home 18 years ago, the length of the lease was of no importance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Oliver was able to extend his lease just ahead of time in September. Oliver and the landlord eventually settled on a premium of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,075.
Mr and Mrs. T Wright took over the lease of a studio flat in Abbey Wood in January 2000. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Abbey Wood with an extended lease were worth £198,800. The average amount of ground rent was £55 collected per annum. The lease terminated in 2081. Considering the 55 years remaining we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.
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 residue of the current lease was 76 years.