For anyone whose Abercarn property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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 Logan, started to get close to the 80-year threshold with the lease on his studio flat in Abercarn. In buying his flat two decades ago, the lease term was of minimal concern. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Logan was able to extend his lease just under the wire in January. Logan and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If the lease had slid to less than eighty years, the figure would have gone up by at least £1,125.
Last Summer we were contacted by Dr Elizabeth Martínez , who was assigned a lease of a ground floor flat in Abercarn in July 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Abercarn with a long lease were valued about £243,000. The average ground rent payable was £65 collected monthly. The lease ran out on 28 January 2089. Having 63 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.
Mr and Mrs. K Nguyen took over the lease of a one bedroom flat in Abercarn in November 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Abercarn with a long lease were valued around £181,600. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish on 10 February 2078. Given that there were 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of costs.