As the length of the unexpired term of a Accrington residential lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Accrington will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Accrington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold proprietor of a conversion apartment in Accrington being marketed with a lease of just over 59 years remaining. Omar informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Winter we were called by Dr A David , who moved into a ground floor apartment in Accrington in May 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative flats in Accrington with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 8 February 2106. Having 80 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
Mrs W Johnson took over the lease of a one bedroom flat in Accrington in April 2003. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Similar flats in Accrington with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed every twelve months. The lease expiry date was on 22 January 2086. Having 60 years left we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including professional charges.