Abbots Bromley 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 Abbots Bromley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Abbots Bromley you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Abbots Bromley flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Abbots Bromley with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Abbots Bromley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her basement flat in Abbots Bromley, Katie started the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was finalised in October 2006. The freeholder’s costs were kept to an absolute minimum.
Mrs Melissa Martínez took over the lease of a purpose-built flat in Abbots Bromley in November 1996. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative residencies in Abbots Bromley with an extended lease were worth £205,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2104. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 not including professional charges.
In 2010 we were e-mailed by Dr Jason Morgan who, having was assigned a lease of a one bedroom flat in Abbots Bromley in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Abbots Bromley with 100 year plus lease were worth £270,000. The average amount of ground rent was £65 collected per annum. The lease ended in 2093. Considering the 68 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.