Abersychan leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Abersychan enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Abersychan you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Abersychan,the lease extension experts 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 Abersychan valuers.
Trailing lengthy correspondence with the landlord of her first floor apartment in Abersychan, Isabelle started the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. G Ward who, having owned a first floor flat in Abersychan in January 2009. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable flats in Abersychan with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed on 18 November 2104. Having 78 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
In 2011 we were e-mailed by Mrs T Scott who, having purchased a garden flat in Abersychan in February 2010. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Abersychan with an extended lease were valued about £191,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed in 2084. Taking into account 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus legals.