Neath Abbey residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Neath Abbey leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a conversion apartment in Neath Abbey on the market with a lease of a few days over 59 years outstanding. Kian on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Spring we were e-mailed by Dr E Turner , who bought a studio apartment in Neath Abbey in July 1998. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar homes in Neath Abbey with a long lease were valued about £275,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed in 2094. Considering the 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
In 2012 we were contacted by Mr and Mrs. V Rose who, having bought a garden apartment in Neath Abbey in August 2011. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Similar flats in Neath Abbey with an extended lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease termination date was on 16 August 2083. Given that there were 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.