Abergele leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Abergele will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Abergele leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her basement flat in Abergele, Madeleine initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work completed in November 2011. The freeholder’s fees were restricted to under 500 GBP.
In 2012 we were phoned by Dr Y Roux who, having purchased a one bedroom flat in Abergele in February 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Abergele with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish on 22 January 2090. Given that there were 64 years unexpired we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.
In 2010 we were e-mailed by Ms Y Jackson who, having acquired a first floor apartment in Abergele in November 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar flats in Abergele with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 6 January 2101. Given that there were 75 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.