Abercarn leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Abercarn will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Abercarn can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 procuring Abercarn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her two bedroom flat in Abercarn, Molly started the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work was finalised in April 2012. The landlord’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr C Sánchez , who was assigned a lease of a purpose-built flat in Abercarn in November 2003. The question was if we could approximate the price could be for a 90 year lease extension. Comparative properties in Abercarn with a long lease were valued around £240,600. The average ground rent payable was £60 billed every twelve months. The lease finished in 2087. Taking into account 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.
In 2014 we were phoned by Mr and Mrs. E Martinez who, having moved into a ground floor flat in Abercarn in August 2002. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Abercarn with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease end date was in 2076. Considering the 51 years as a residual term we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.