Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Abbeymeads. Clearly, the term of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Abbeymeads have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful attention before delaying your Abbeymeads lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Abbeymeads with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Abbeymeads can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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.
Subsequent to lengthy negotiations with the freeholder of her one bedroom flat in Abbeymeads, Phoebe initiated the lease extension process as the 80 year threshold was swiftly approaching. The transaction was finalised in April 2006. The landlord’s costs were restricted to under 700 pounds.
In 2009 we were e-mailed by Mrs Bethan Bernard who, having was assigned a lease of a studio flat in Abbeymeads in November 2011. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable homes in Abbeymeads with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 collected yearly. The lease concluded in 2097. Taking into account 71 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Last Christmas we were contacted by Mrs H Hill , who purchased a one bedroom apartment in Abbeymeads in April 1995. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable flats in Abbeymeads with 100 year plus lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed on 24 May 2086. Having 60 years outstanding we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus professional charges.