Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Abercarn. Clearly, the period of lease left reduces over time. This is often overlooked and only becomes a problem when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Abercarn have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful attention before putting off your Abercarn lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Abercarn with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Abercarn can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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 dealing with Abercarn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Austin, came seriously near to the eighty-year threshold with the lease on his leasehold apartment in Abercarn. Having purchased his home two decades ago, the length of the lease was of no relevance. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Austin was able to extend his lease just in the nick of time in September. Austin and the freeholder eventually agreed on sum of £6,000 . If the lease had dropped lower than eighty years, the price would have escalated by a minimum £900.
In 2011 we were e-mailed by Ms Ellie Moore who, having moved into a one bedroom apartment in Abercarn in July 1997. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Abercarn with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected every twelve months. The lease finished on 14 April 2093. Given that there were 68 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
Mr U Taylor purchased a purpose-built flat in Abercarn in July 1999. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable homes in Abercarn with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed annually. The lease ran out in 2082. Having 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.