There is no doubt about it a leasehold property in Abbots Bromley is a wasting asset as a result of the shortening lease. Where the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Abbots Bromley will qualify for this right; however a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Abbots Bromley with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 | 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 Abbots Bromley can be a difficult process. We recommend you get 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 procuring 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.
Subsequent to protracted correspondence with the freeholder of her two bedroom apartment in Abbots Bromley, Daisy started the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work was finalised in May 2006. The landlord’s costs were kept to an absolute minimum.
Mr Ben Young moved into a garden flat in Abbots Bromley in March 2000. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative residencies in Abbots Bromley with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 collected every twelve months. The lease expired in 2103. Considering the 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Mr Alfie King acquired a garden flat in Abbots Bromley in June 2005. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical flats in Abbots Bromley with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish on 3 May 2092. Taking into account 66 years remaining we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus professional charges.