For those whose Abbeymeads property is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 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 in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Abbeymeads can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 a wealth of experience dealing with Abbeymeads lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a 2 bedroom flat in Abbeymeads being marketed with a lease of just over sixty years outstanding. Felix on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Winter we were phoned by Mr and Mrs. H Martinez , who purchased a recently refurbished flat in Abbeymeads in April 2007. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative flats in Abbeymeads with a long lease were worth £208,600. The average amount of ground rent was £60 collected monthly. The lease concluded on 25 July 2083. Considering the 57 years left we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.
Last Christmas we were phoned by Mr Alexander Alexander , who moved into a one bedroom flat in Abbeymeads in August 2005. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Abbeymeads with an extended lease were worth £200,000. The average ground rent payable was £50 billed annually. The lease ended on 4 February 2103. Considering the 77 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.