Abbeymeads leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Leasehold owners in Abbeymeads will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Abbeymeads with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Abbeymeads,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Abbeymeads valuers.
Stanley was the the leasehold owner of a high value flat in Abbeymeads on the market with a lease of fraction over 72 years left. Stanley on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were contacted by Mr and Mrs. C Girard , who moved into a studio flat in Abbeymeads in February 2002. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in Abbeymeads with a long lease were worth £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 16 January 2103. Given that there were 78 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2013 we were contacted by Ms Isabel Norbert who, having was assigned a lease of a one bedroom apartment in Abbeymeads in March 1999. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Abbeymeads with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 collected annually. The lease lapsed on 21 March 2092. Taking into account 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.