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. Legislation has been in place for sometime now which entitles qualifying Abersychan residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Abersychan you must check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Abersychan leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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; |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service will provide you better control over the value of your Abersychan leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Michael, came dangerously close to the 80-year mark with the lease on his basement apartment in Abersychan. In buying his property twenty years previously, the lease term was of no relevance. Luckily, he noticed he needed to take action soon on a lease extension. Michael was able to extend his lease just under the wire last April. Michael and the landlord who owned the flat above eventually settled on sum of £5,000 . If the lease had slid to less than eighty years, the premium would have escalated by at least £950.
Last June we were e-mailed by Mr A Clark , who took over the lease of a garden flat in Abersychan in March 2006. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative premises in Abersychan with a long lease were valued around £193,400. The average amount of ground rent was £65 invoiced annually. The lease termination date was on 24 September 2085. Having 59 years left we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
Last Autumn we were phoned by Mrs J Rodríguez , who took over the lease of a recently refurbished apartment in Abersychan in November 2008. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical homes in Abersychan with a long lease were valued about £255,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded on 6 February 2096. Having 70 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.