On the balance of probabilities if you own a flat in Abercarn you actually own a long leasehold interest over your property
Leasehold residencies in Abercarn with in excess of 100 years remaining 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset 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 |
The conveyancing solicitors that we work with undertake Abercarn 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 conveyancing solicitor we work with provide it.
Half a year ago Seth, came very close to the 80-year mark with the lease on his garden apartment in Abercarn. In buying his property 19 years previously, the length of the lease was of minimal interest. by good luck, he noticed he needed to take steps soon on a lease extension. Seth was able to extend his lease just under the wire last September. Seth and the freeholder eventually settled on a premium of £6,000 . If the lease had descended below eighty years, the price would have gone up by at least £1,050.
In 2013 we were e-mailed by Mr Noah Moore who, having moved into a first floor flat in Abercarn in March 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Abercarn with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease terminated in 2101. Having 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Last Winter we were phoned by Mr Jacob Thompson , who took over the lease of a ground floor apartment in Abercarn in January 2006. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative properties in Abercarn with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease elapsed on 15 October 2090. Taking into account 64 years remaining we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including costs.