As the length of the unexpired term of a Abergele residential lease diminished so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Abergele will meet the qualifying criteria; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Abergele with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Abergele,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Abergele valuers.
Two years ago Leon, started to get near to the eighty-year mark with the lease on his garden apartment in Abergele. Having bought his flat two decades ago, the lease term was of no importance. Fortunately, he noticed he needed to take steps soon on a lease extension. Leon arranged for a lease extension just in the nick of time in June. Leon and the landlord ultimately settled on sum of £5,500 . If the lease had slid lower than eighty years, the price would have gone up by at least £950.
Last Winter we were contacted by Mr and Mrs. E Sánchez , who completed a one bedroom apartment in Abergele in February 2010. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar flats in Abergele with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected monthly. The lease termination date was on 7 March 2101. Given that there were 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Mr and Mrs. A Phillips purchased a garden apartment in Abergele in May 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Abergele with an extended lease were valued about £176,200. The average amount of ground rent was £65 collected annually. The lease elapsed in 2081. Given that there were 56 years left we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of legals.