For those whose Abbots Bromley property is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Abbots Bromley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jackson, came seriously close to the eighty-year threshold with the lease on his basement apartment in Abbots Bromley. Having bought his home 19 years ago, the lease term was of little relevance. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Jackson extended the lease just in the nick of time last August. Jackson and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had dipped to less than eighty years, the premium would have become more exhorbitant by a minimum £1,150.
Mrs Kelsey Bennett acquired a one bedroom flat in Abbots Bromley in August 2000. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical homes in Abbots Bromley with 100 year plus lease were in the region of £252,800. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 16 November 2091. Considering the 65 years remaining we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
Dr W Anderson moved into a purpose-built apartment in Abbots Bromley in January 2007. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative premises in Abbots Bromley with an extended lease were worth £191,400. The average amount of ground rent was £55 invoiced per annum. The lease ended on 19 May 2080. Taking into account 54 years as a residual term we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including expenses.