Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Accrington. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Accrington have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give careful attention before putting off your Accrington lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Accrington with more than 100 years left on the lease are often referred to as ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Accrington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Accrington valuers.
Trailing lengthy correspondence with the landlord of her first floor flat in Accrington, Katie initiated the lease extension process as the eighty year deadline was quickly approaching. The legal work was concluded in April 2009. The landlord’s charges were negotiated to a tad over 700 GBP.
Mrs B Torres took over the lease of a studio apartment in Accrington in October 2003. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Accrington with a long lease were in the region of £254,200. The average ground rent payable was £60 billed monthly. The lease expired in 2076. Given that there were 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of expenses.
Dr Nathaniel Roberts moved into a recently refurbished flat in Accrington in August 1998. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable properties in Accrington with a long lease were in the region of £210,600. The average amount of ground rent was £45 billed quarterly. The lease terminated on 6 March 2087. Considering the 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including professional charges.