Abingdon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Abingdon residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Abingdon you would be well advised to see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Abingdon flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Abingdon can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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.
In the wake of 9 months of lengthy negotiations with the landlord of her studio flat in Abingdon, Natasha commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The legal work was concluded in November 2008. The landlord’s costs were restricted to less than 700 pounds.
In 2010 we were phoned by Mr and Mrs. B François who, having moved into a newly refurbished apartment in Abingdon in August 2001. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical residencies in Abingdon with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease ran out in 2089. Given that there were 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. M Walker who, having took over the lease of a ground floor apartment in Abingdon in November 2002. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Abingdon with 100 year plus lease were worth £189,000. The average ground rent payable was £55 invoiced annually. The lease concluded in 2078. Taking into account 53 years unexpired we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.