For anyone whose Abridge home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Abridge with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Abridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her studio apartment in Abridge, Jodie initiated the lease extension process as the 80 year mark was fast advancing. The legal work was concluded in January 2005. The freeholder’s costs were negotiated to a tad over 450 GBP.
Dr Megan González purchased a one bedroom apartment in Abridge in September 2005. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Identical residencies in Abridge with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2103. Given that there were 77 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
An example of a Freehold Enfranchisement decision 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 number of years remaining on the existing lease(s) was 69.26 years.