With a residential leasehold property in Abergele, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Abergele with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Abergele can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Abergele lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her one bedroom flat in Abergele, Alicia initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was concluded in March 2008. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. V Hernández owned a purpose-built flat in Abergele in August 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable properties in Abergele with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2086. Given that there were 60 years left we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus fees.
In 2012 we were called by Mrs Courtney Díaz who, having completed a one bedroom apartment in Abergele in March 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar premises in Abergele with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out in 2097. Considering the 71 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.