When it comes to domestic leasehold premises in Abridge, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than 80 years left. Anyone in Abridge with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When a lease has less than 80 years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Abridge with in excess of 100 years outstanding 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Abridge,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Abridge valuers.
Subsequent to protracted negotiations with the freeholder of her purpose-built flat in Abridge, Georgina started the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was concluded in August 2007. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. H Hill , who completed a one bedroom flat in Abridge in August 2008. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar flats in Abridge with a long lease were valued about £176,200. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2082. Having 56 years remaining we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus costs.
An example of a Freehold Enfranchisement case for a Abridge premises 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 term was 69.26 years.