There is no doubt about it a leasehold flat or house in Abbeymeads is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Abbeymeads will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| 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. |
The lawyers that we work with undertake Abbeymeads lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Muhammad owned a 2 bedroom flat in Abbeymeads being marketed with a lease of a little over 59 years left. Muhammad informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2012 we were e-mailed by Mr R Nelson who, having moved into a one bedroom flat in Abbeymeads in June 2010. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical premises in Abbeymeads with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 billed yearly. The lease finished in 2090. Having 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.
Last Christmas we were approach by Mr Logan Ramírez , who bought a basement apartment in Abbeymeads in February 2009. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Abbeymeads with a long lease were valued around £189,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expiry date was on 17 June 2079. Taking into account 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.