The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Abercarn have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Abercarn lease extension. Putting off that expense now simply increases the amount you will ultimately be required to pay for a lease extension.
Leasehold properties in Abercarn with in excess of 100 years outstanding on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Abercarn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Tommy, came very near to the eighty-year threshold with the lease on his leasehold flat in Abercarn. In buying his home twenty years ago, the length of the lease was of minimal relevance. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Tommy arranged for a lease extension just in the nick of time last September. Tommy and the landlord subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £900.
Mr and Mrs. G Rose took over the lease of a basement flat in Abercarn in September 1995. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Abercarn with a long lease were worth £201,200. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired on 6 February 2081. Having 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were phoned by Mrs Phoebe Clarke who, having bought a one bedroom flat in Abercarn in July 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Abercarn with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ended in 2101. Considering the 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.