The market value of Abergele 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 unexpired lease term is below than eighty years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The conveyancing solicitors that we work with procure Abergele lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Reuben, came very near to the eighty-year mark with the lease on his first floor apartment in Abergele. Having purchased his home two decades ago, the length of the lease was of no significance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Reuben arranged for a lease extension at the eleventh hour in April. Reuben and the landlord subsequently agreed on a premium of £6,000 . If the lease had dipped below 80 years, the price would have gone up by a minimum £1,075.
Last Christmas we were phoned by Mrs Bethany Murphy , who completed a garden apartment in Abergele in May 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable homes in Abergele with a long lease were worth £186,000. The average amount of ground rent was £65 billed per annum. The lease elapsed on 19 November 2084. Taking into account 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
Dr Logan Smith took over the lease of a first floor apartment in Abergele in October 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Abergele with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 billed annually. The lease terminated in 2095. Having 69 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.