Chances are that if you own a flat in Abingdon you actually own a long leasehold interest over your property
Leasehold premises in Abingdon with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Abingdon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Abingdon valuers.
Trailing unsuccessful negotiations with the freeholder of her purpose-built apartment in Abingdon, Amelia commenced the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in May 2008. The freeholder’s fees were restricted to less than 650 pounds.
Last Winter we were contacted by Ms Alicia Bailey , who took over the lease of a purpose-built apartment in Abingdon in September 2009. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Abingdon with an extended lease were in the region of £267,600. The average ground rent payable was £65 invoiced monthly. The lease ran out in 2093. Having 67 years remaining we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.
Last Christmas we were phoned by Mrs H Lambert , who acquired a first floor apartment in Abingdon in January 2004. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Abingdon with an extended lease were worth £206,200. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2082. Taking into account 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.