Abridge leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Abridge will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Abridge with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 Abridge can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Abridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Dexter, started to get near to the 80-year threshold with the lease on his first floor apartment in Abridge. Having purchased his home two decades ago, the length of the lease was of little concern. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Dexter extended the lease just under the wire in May. Dexter and the freeholder ultimately agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £975.
In 2012 we were approached by Ms Victoria Lefèvre who, having completed a purpose-built apartment in Abridge in April 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Abridge with an extended lease were in the region of £227,800. The average amount of ground rent was £45 collected yearly. The lease elapsed on 22 August 2091. Given that there were 65 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Abridge flat 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 was in relation to 2 flats. The unexpired term was 69.26 years.