With a long leasehold premises in Accrington, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Leasehold owners in Accrington with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has under eighty years left, under the current Act the freeholder can calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Accrington can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Accrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the freeholder of her basement flat in Accrington, Yasmin commenced the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in August 2006. The freeholder’s fees were restricted to a tad over 600 GBP.
Mr and Mrs. A Smith completed a first floor flat in Accrington in May 2006. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative flats in Accrington with 100 year plus lease were valued about £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2096. Considering the 71 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Summer we were phoned by Mrs Sophie Thompson , who took over the lease of a ground floor apartment in Accrington in April 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Accrington with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease expiry date was on 11 February 2076. Considering the 51 years unexpired we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including professional charges.