When it comes to residential leasehold property in Abergele, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years remaining. Leasehold owners in Abergele with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you better control over the value of your Abergele leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Harrison, started to get close to the eighty-year mark with the lease on his first floor flat in Abergele. In buying his flat two decades ago, the unexpired term was of little significance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Harrison arranged for a lease extension just under the wire last April. Harrison and the freeholder eventually settled on an amount of £5,500 . If the lease had descended below eighty years, the premium would have escalated by a minimum £1,050.
In 2012 we were called by Ms Erin Lefebvre who, having was assigned a lease of a ground floor flat in Abergele in October 2002. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Abergele with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2105. Given that there were 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
In 2012 we were contacted by Ms R Lefèvre who, having bought a first floor apartment in Abergele in May 2011. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable properties in Abergele with a long lease were worth £193,400. The average amount of ground rent was £65 invoiced monthly. The lease ended on 9 July 2085. Taking into account 59 years remaining we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.