Unfortunately that a Abridge residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Abridge property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Abridge will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Abridge with in excess of one hundred years left 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 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. |
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Abridge,the lease extension solicitors 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 Abridge valuers.
Following protracted correspondence with the freeholder of her two bedroom apartment in Abridge, Katherine started the lease extension process as the 80 year mark was fast nearing. The lease extension was finalised in March 2008. The landlord’s costs were restricted to a tad over 450 pounds.
In 2012 we were approached by Dr Thomas Wright who, having bought a recently refurbished apartment in Abridge in March 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Abridge with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 invoiced yearly. The lease ran out in 2076. Having 51 years remaining we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Abridge residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The unexpired residue of the current lease was 69.26 years.