Accrington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Accrington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Accrington you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Accrington with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Accrington can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring Accrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Kian, started to get close to the 80-year mark with the lease on his first floor apartment in Accrington. Having bought his home two decades ago, the length of the lease was of no interest. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Kian was able to extend his lease just under the wire in May. Kian and the freeholder eventually settled on a premium of £6,000 . If the lease had dipped to less than eighty years, the amount would have increased by a minimum £950.
Last month we were e-mailed by Mr Austin Rose , who was assigned a lease of a ground floor apartment in Accrington in July 2008. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Accrington with a long lease were valued about £227,800. The average ground rent payable was £45 invoiced per annum. The lease termination date was in 2091. Given that there were 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
Last Spring we were called by Dr Henry Ramírez , who took over the lease of a first floor flat in Accrington in September 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Accrington with an extended lease were valued about £275,000. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2102. Considering the 76 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.