It’s an underpublicised certainty that a Abergele residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Abergele property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Abergele will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Abergele with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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. |
Using our service gives you enhanced 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Evan, came seriously close to the 80-year threshold with the lease on his two bedroom apartment in Abergele. In buying his home two decades ago, the lease term was of minimal bearing. Fortunately, he recognised he needed to take steps soon on a lease extension. Evan arranged for a lease extension at the eleventh hour in March. Evan and the landlord in the end settled on sum of £5,000 . If the lease had fallen to less than 80 years, the figure would have increased by at least £1,150.
Last month we were contacted by Mr Arthur Ali , who bought a purpose-built flat in Abergele in May 2001. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Abergele with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 billed annually. The lease terminated in 2085. Considering the 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.
Mr and Mrs. V Moreau took over the lease of a first floor apartment in Abergele in August 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Abergele with a long lease were valued about £255,000. The average amount of ground rent was £50 collected yearly. The lease lapsed in 2096. Considering the 70 years remaining we approximated the premium to the landlord for the lease extension to be within £10,500 and £12,000 not including legals.