There is no doubt about it a leasehold flat or house in Abercarn is a wasting asset as a result of the shortening lease. If the residual term has, beyond 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in Abercarn will meet the qualifying criteria; however a lawyer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Abercarn,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Abercarn valuers.
Stanley was the the leasehold owner of a 2 bedroom apartment in Abercarn being marketed with a lease of fraction over 61 years left. Stanley informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Dr Jonathan Murphy who, having purchased a one bedroom flat in Abercarn in February 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Abercarn with 100 year plus lease were worth £267,600. The average ground rent payable was £65 collected per annum. The lease came to a finish on 7 February 2093. Having 67 years left we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus legals.
Mr and Mrs. Y Wood acquired a basement apartment in Abercarn in October 1996. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Abercarn with a long lease were in the region of £206,200. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 28 April 2082. Taking into account 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.