With a long leasehold property in Abergele, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years left. Anyone in Abergele with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant Act the landlord can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Abergele leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her first floor flat in Abergele, Louise initiated the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in May 2008. The landlord’s charges were kept to an absolute minimum.
Mrs K Green owned a one bedroom apartment in Abergele in February 1998. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable flats in Abergele with a long lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed in 2089. Having 63 years left we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.
Dr Jasmine Williams bought a basement apartment in Abergele in November 2008. We are asked if we could estimate the price would be for a ninety year lease extension. Similar flats in Abergele with a long lease were worth £265,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease expiry date was on 19 August 2100. Having 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.