It’s an underpublicised certainty that a Abercarn residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Abercarn property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Abercarn will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Abercarn with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Abercarn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Harvey, came critically close to the eighty-year threshold with the lease on his purpose- built flat in Abercarn. Having purchased his flat twenty years previously, the unexpired term was of no significance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Harvey extended the lease just under the wire in January. Harvey and the freeholder in the end settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £975.
Last month we were contacted by Mr and Mrs. R Davies , who took over the lease of a one bedroom apartment in Abercarn in September 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar residencies in Abercarn with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected annually. The lease ran out on 28 May 2098. Taking into account 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Mr Samuel Lee was assigned a lease of a one bedroom apartment in Abercarn in November 2011. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Abercarn with a long lease were valued about £240,600. The mid-range ground rent payable was £60 invoiced annually. The lease concluded on 16 February 2087. Taking into account 62 years outstanding we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus professional charges.