The re-sale value of a leasehold property in Abercarn is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year mark. Leasehold Reform legislation entitles Abercarn qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Abercarn with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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 will provide you increased control over the value of your Abercarn leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her two bedroom flat in Abercarn, Samantha started the lease extension process as the eighty year threshold was quickly coming. The legal work was finalised in June 2007. The landlord’s costs were negotiated to a tad over five hundred pounds.
In 2009 we were phoned by Ms Elizabeth Scott who, having owned a ground floor apartment in Abercarn in May 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Abercarn with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced annually. The lease ended on 14 November 2082. Taking into account 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
Mr and Mrs. R García bought a basement apartment in Abercarn in April 2012. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable flats in Abercarn with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 invoiced yearly. The lease finished on 2 November 2102. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.