For anyone whose Abergele home is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Abergele with over 100 years remaining 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
Lender | Requirement |
---|---|
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; |
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. |
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. |
Lease extensions in Abergele can be a difficult process. We recommend you get professional help from a conveyancer 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 a wealth of experience procuring Abergele lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo owned a high value flat in Abergele being sold with a lease of just over 61 years outstanding. Theo on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Spring we were e-mailed by Dr Yasmin Collins , who moved into a recently refurbished apartment in Abergele in October 2007. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar homes in Abergele with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease expired on 16 April 2103. Considering the 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
Mr A Mercier took over the lease of a one bedroom apartment in Abergele in July 1996. The question was if we could estimate the price could be to extend the lease by 90 years. Comparable premises in Abergele with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced monthly. The lease elapsed in 2083. Having 59 years unexpired we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.