When it comes to long leasehold property in Abbots Bromley, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Anyone in Abbots Bromley with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than eighty years left, under the current statute the freeholder can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Abbots Bromley with more than 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Abbots Bromley can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge dealing with Abbots Bromley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her ground floor flat in Abbots Bromley, Elizabeth initiated the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work was concluded in June 2015. The landlord’s charges were negotiated to slightly above 700 GBP.
In 2009 we were approached by Mr C Thompson who, having bought a first floor flat in Abbots Bromley in January 2008. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Abbots Bromley with a long lease were valued around £285,000. The mid-range ground rent payable was £45 billed every twelve months. The lease expired in 2097. Having 72 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2011 we were phoned by Mr and Mrs. W Richardson who, having purchased a garden apartment in Abbots Bromley in September 2011. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Abbots Bromley with 100 year plus lease were worth £233,200. The average ground rent payable was £60 collected monthly. The lease came to a finish in 2086. Considering the 61 years left we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus legals.