It’s an underpublicised certainty that a Abergele residential lease is a deteriorating 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 reduction being disguised by increases in the Abergele property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Abergele will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Abergele can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Abergele lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian owned a 2 bedroom flat in Abergele being sold with a lease of a few days over 61 years outstanding. Sebastian informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr and Mrs. R Mercier bought a first floor apartment in Abergele in November 2000. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Abergele with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 billed quarterly. The lease lapsed in 2105. Considering the 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
In 2013 we were e-mailed by Mr Rory Adams who, having acquired a purpose-built apartment in Abergele in May 2000. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical flats in Abergele with an extended lease were valued around £200,800. The mid-range ground rent payable was £65 billed yearly. The lease lapsed in 2085. Given that there were 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including professional charges.