The value of Abergavenny leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 Abergavenny can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 Abergavenny lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her leasehold apartment in Abergavenny, Eleanor initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work was finalised in June 2014. The landlord’s charges were negotiated to less than 600 GBP.
In 2013 we were called by Mr Ollie Gunderson who, having took over the lease of a studio apartment in Abergavenny in November 1995. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Abergavenny with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 billed yearly. The lease concluded on 17 August 2080. Having 54 years remaining we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.
In 2011 we were phoned by Mrs Chantelle Richardson who, having took over the lease of a newly refurbished flat in Abergavenny in May 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Abergavenny with a long lease were in the region of £227,800. The average ground rent payable was £45 billed monthly. The lease elapsed on 6 July 2091. Taking into account 65 years outstanding we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.