Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Abbey Wood. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Abbey Wood have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Abbey Wood lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Abbey Wood with over one hundred years unexpired on the lease are often 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 freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Coventry Building Society | 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. |
| 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 | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased 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 decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Callum, came very close to the 80-year threshold with the lease on his basement flat in Abbey Wood. Having purchased his home two decades ago, the unexpired term was of little bearing. by good luck, he recognised he needed to take steps soon on a lease extension. Callum was able to extend his lease just under the wire in June. Callum and the freeholder subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have escalated by at least £1,025.
In 2014 we were called by Mrs Georgia Turner who, having moved into a purpose-built flat in Abbey Wood in March 1996. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in Abbey Wood with a long lease were worth £243,000. The mid-range ground rent payable was £65 billed annually. The lease came to a finish on 22 August 2089. Given that there were 63 years remaining we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.
An example of a Lease Extension case 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 was in relation to 13 flats. The unexpired lease term was 76 years.