The nearer a domestic lease in Abingdon gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Abingdon will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Abingdon can be a difficult process. We recommend you obtain guidance from a conveyancer 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.
Jamie owned a high value flat in Abingdon on the market with a lease of fraction over fifty eight years outstanding. Jamie informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and secured an acceptable resolution informally and readily saleable.
Last Christmas we were approach by Mr and Mrs. W Cox , who moved into a one bedroom flat in Abingdon in April 2012. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in Abingdon with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected every twelve months. The lease ended on 13 November 2095. Having 69 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Last year we were approach by Dr W Garcia , who moved into a purpose-built apartment in Abingdon in August 1996. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Abingdon with a long lease were valued around £216,000. The mid-range ground rent payable was £60 billed per annum. The lease ended in 2084. Having 58 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.