Accrington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Accrington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Accrington you should see if your lease has between 70 and 90 years left. There are compelling reasons why a Accrington leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Accrington with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Accrington valuers.
Following unsuccessful negotiations with the landlord of her garden apartment in Accrington, Tia commenced the lease extension process as the 80 year mark was swiftly approaching. The legal work was finalised in August 2012. The landlord’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Dr T Scott who, having completed a ground floor flat in Accrington in May 2009. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar residencies in Accrington with 100 year plus lease were valued about £220,400. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was on 27 May 2090. Considering the 64 years unexpired we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of costs.
Last Summer we were contacted by Mr and Mrs. W Gray , who took over the lease of a purpose-built flat in Accrington in April 2000. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Accrington with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease lapsed in 2101. Taking into account 75 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.