It’s an underpublicised certainty that a Abergavenny residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Abergavenny property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Abergavenny will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Abergavenny with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Retaining our service will provide you increased control over the value of your Abergavenny leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew was the the leasehold proprietor of a 2 bedroom apartment in Abergavenny being marketed with a lease of fraction over 72 years unexpired. Andrew informally approached his freeholder a well known local-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 on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last March we were phoned by Mr Hunter Allen , who took over the lease of a purpose-built apartment in Abergavenny in May 2006. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative homes in Abergavenny with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed every twelve months. The lease expired on 16 August 2085. Taking into account 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
In 2009 we were called by Ms Mollie Clark who, having moved into a newly refurbished apartment in Abergavenny in November 2011. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable premises in Abergavenny with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish on 14 August 2096. Given that there were 70 years left we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including expenses.