Unfortunately 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 early years due to the depreciation being disguised by increases in the Abergavenny 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 under 80 years - otherwise a higher premium will be due. Most flat owners in Abergavenny will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not be entitled. 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 from beginning to end of the formalities.
Leasehold residencies in Abergavenny with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 enhanced control over the value of your Abergavenny leasehold, as your property will be more valuable and saleable in terms of 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.
Trailing protracted negotiations with the landlord of her two bedroom apartment in Abergavenny, Hannah initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was finalised in January 2013. The freeholder’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mrs S Martin , who purchased a first floor flat in Abergavenny in November 2012. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar flats in Abergavenny with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out on 1 February 2098. Considering the 73 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Last Spring we were approach by Dr Isaac López , who was assigned a lease of a first floor apartment in Abergavenny in August 2004. The question was if we could estimate the price could be for a 90 year lease extension. Similar premises in Abergavenny with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2078. Having 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus professional charges.