The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Abergele can extend the lease for an additional ninety years in accordance with legislation. Please give careful consideration before delaying your Abergele lease extension. Postponing the costs today simply escalates the premium you will eventually have to pay for a lease extension.
Leasehold premises in Abergele with more than 100 years remaining on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Abergele can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 Abergele lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kian was the the leasehold owner of a studio flat in Abergele on the market with a lease of just over 59 years left. Kian informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured satisfactory resolution informally and sell the flat.
Last Summer we were phoned by Mr L Phillips , who bought a purpose-built apartment in Abergele in January 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Abergele with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 billed yearly. The lease expired on 22 May 2078. Considering the 52 years left we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including costs.
Last Autumn we were approach by Mr P Rose , who took over the lease of a ground floor apartment in Abergele in November 1999. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Abergele with a long lease were worth £218,000. The mid-range ground rent payable was £45 billed annually. The lease terminated on 20 April 2089. Given that there were 63 years outstanding we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of expenses.