The only way is down when it comes to Abbey Wood lease terms. Abbey Wood leaseholds that have a residual term less than than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Abbey Wood leasehold, as your property will be more valuable and saleable in relation to the 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.
In the wake of 6 months of protracted negotiations with the freeholder of her two bedroom apartment in Abbey Wood, Alexandra commenced the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work completed in February 2005. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. B Moore owned a garden apartment in Abbey Wood in March 2001. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Abbey Wood with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed on 3 March 2079. Considering the 54 years outstanding we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of fees.
An example of a Lease Extension case for a Abbey Wood residence is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired residue of the current lease was 76 years.