Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Abingdon. Clearly, the term of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Abingdon have the right to extend the lease for a further 90 years under statute. You should give due deliberation before putting off your Abingdon lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Abingdon with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Abingdon can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Abingdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her purpose-built flat in Abingdon, Chloe commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The lease extension completed in March 2011. The landlord’s fees were kept to an absolute minimum.
Mr Noah Vincent moved into a newly refurbished flat in Abingdon in June 2008. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Identical residencies in Abingdon with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 12 November 2101. Considering the 76 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last Summer we were e-mailed by Mr and Mrs. M Smith , who acquired a garden flat in Abingdon in November 2000. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative residencies in Abingdon with an extended lease were in the region of £257,800. The average ground rent payable was £65 invoiced yearly. The lease terminated on 13 August 2090. Given that there were 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.