Chances are that where you own a flat in Abercarn you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Abercarn,the lease extension lawyers 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.
Riley was the the leasehold proprietor of a conversion apartment in Abercarn being sold with a lease of a little over 59 years remaining. Riley on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to invoke his statutory right. Riley procured expert advice and secured satisfactory resolution informally and sell the property.
In 2009 we were contacted by Mrs Kayleigh François who, having purchased a ground floor apartment in Abercarn in June 2007. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar residencies in Abercarn with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 collected quarterly. The lease expired on 26 September 2089. Considering the 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
Dr Y Allen acquired a purpose-built apartment in Abercarn in March 2012. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar residencies in Abercarn with a long lease were worth £184,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended on 9 May 2078. Taking into account 53 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.