The only way is down when it comes to Abercarn lease terms. Abercarn flats that have a residual term lower than 80 years will de-escalate in value even faster, and the cost to extend your lease will go up.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Engaging our service will provide you increased control over the value of your Abercarn leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dexter, started to get near to the 80-year threshold with the lease on his first floor flat in Abercarn. Having purchased his property two decades ago, the length of the lease was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Dexter extended the lease just under the wire in April. Dexter and the freeholder subsequently settled on sum of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £1,075.
Last Autumn we were phoned by Ms L Petit , who was assigned a lease of a one bedroom flat in Abercarn in April 2012. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative premises in Abercarn with an extended lease were worth £198,800. The average ground rent payable was £55 billed per annum. The lease came to a finish in 2081. Considering the 55 years outstanding we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including fees.
Mr and Mrs. E Hernández moved into a garden flat in Abercarn in July 1998. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Identical flats in Abercarn with an extended lease were in the region of £295,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed in 2101. Given that there were 75 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.