Abingdon leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Abingdon will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Abingdon with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
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.
Muhammad owned a 2 bedroom apartment in Abingdon on the market with a lease of just over sixty years unexpired. Muhammad informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. L Bell acquired a first floor flat in Abingdon in August 2011. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Abingdon with a long lease were valued around £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 3 June 2076. Taking into account 50 years left we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.
Last Spring we were e-mailed by Mrs I Lewis , who owned a first floor flat in Abingdon in February 2012. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Abingdon with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed in 2096. Having 70 years outstanding we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.