The only way is down when it comes to Abbeymeads lease terms. Abbeymeads leaseholds that have a lease term lower than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Abbeymeads can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 procuring Abbeymeads lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her one bedroom flat in Abbeymeads, Sophia started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in January 2010. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Ms U Baker , who moved into a newly refurbished apartment in Abbeymeads in July 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Abbeymeads with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 billed monthly. The lease elapsed on 28 February 2076. Considering the 50 years unexpired we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last Christmas we were called by Mr and Mrs. A Gray , who took over the lease of a studio apartment in Abbeymeads in October 2001. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Identical properties in Abbeymeads with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced annually. The lease finished on 22 May 2096. Having 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.