There is no doubt about it a leasehold property in Abergele is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Abergele will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Abergele,the lease extension lawyers 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.
Trailing unsuccessful correspondence with the freeholder of her purpose-built flat in Abergele, Rachel commenced the lease extension process as the 80 year mark was rapidly coming. The legal work completed in January 2013. The landlord’s fees were restricted to about 550 GBP.
In 2011 we were e-mailed by Dr J Stewart who, having completed a one bedroom apartment in Abergele in July 2007. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Abergele with an extended lease were valued about £265,000. The average ground rent payable was £50 billed quarterly. The lease terminated in 2098. Taking into account 73 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last Autumn we were called by Mr Ben Flores , who completed a one bedroom apartment in Abergele in September 1996. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Abergele with 100 year plus lease were worth £264,000. The average ground rent payable was £60 collected monthly. The lease ended in 2078. Given that there were 53 years unexpired we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus professional charges.