With a residential leasehold property in Abingdon, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Abingdon with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has below 80 years left, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Abingdon with over 100 years outstanding 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Abingdon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Rory, started to get near to the 80-year mark with the lease on his studio apartment in Abingdon. In buying his flat twenty years ago, the lease term was of minimal relevance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Rory was able to extend his lease at the eleventh hour in January. Rory and the landlord subsequently agreed on the final figure of £5,000 . If the lease had slipped below eighty years, the sum would have increased by at least £1,050.
Last year we were phoned by Mr and Mrs. Y Hernández , who acquired a garden flat in Abingdon in November 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Abingdon with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed on 5 February 2100. Taking into account 74 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Ms Rosie Campbell acquired a ground floor apartment in Abingdon in November 2008. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative homes in Abingdon with 100 year plus lease were worth £248,000. The average amount of ground rent was £65 billed every twelve months. The lease terminated in 2089. Given that there were 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.