Abergele leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Abergele will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a freeholder in Abergele,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Abergele valuers.
Subsequent to lengthy correspondence with the landlord of her first floor flat in Abergele, Mollie initiated the lease extension process as the 80 year mark was rapidly coming. The legal work was concluded in March 2013. The freeholder’s charges were restricted to slightly above six hundred GBP.
Last Winter we were called by Mr and Mrs. S Gray , who owned a ground floor flat in Abergele in November 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Abergele with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 invoiced yearly. The lease came to a finish in 2082. Having 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including professional charges.
In 2013 we were phoned by Ms Katie Mercier who, having took over the lease of a one bedroom flat in Abergele in August 2004. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Comparable properties in Abergele with a long lease were valued about £242,600. The mid-range ground rent payable was £45 billed annually. The lease terminated in 2093. Taking into account 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.