The market value of a leasehold property in Abingdon is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year threshold. Current legislation enables Abingdon qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Abingdon with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Abingdon valuers.
Trailing lengthy correspondence with the landlord of her studio apartment in Abingdon, Alisha commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction completed in August 2013. The landlord’s fees were restricted to under 500 pounds.
In 2009 we were e-mailed by Mr and Mrs. I Baker who, having owned a ground floor apartment in Abingdon in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Abingdon with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed monthly. The lease finished on 9 April 2077. Having 52 years remaining we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus legals.
Last Winter we were phoned by Mr and Mrs. D Anderson , who was assigned a lease of a garden apartment in Abingdon in August 2004. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Abingdon with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2097. Considering the 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.