Abbeymeads leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Abbeymeads enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Abbeymeads you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Abbeymeads with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Abbeymeads leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Zachary owned a high value apartment in Abbeymeads on the market with a lease of a little over fifty eight years remaining. Zachary informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2013 we were approached by Dr O Norbert who, having was assigned a lease of a garden flat in Abbeymeads in November 2005. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar residencies in Abbeymeads with an extended lease were valued around £260,200. The average amount of ground rent was £65 invoiced annually. The lease ran out on 1 April 2091. Given that there were 66 years unexpired we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including fees.
Last year we were approach by Dr Eliot Brooks , who moved into a purpose-built flat in Abbeymeads in August 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Abbeymeads with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 5 March 2080. Considering the 55 years left we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.