When it comes to residential leasehold premises in Accrington, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Leasehold owners in Accrington with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under eighty years outstanding, under the current Act the freeholder can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
The conveyancing solicitors that we work with procure Accrington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In 2014 Archie, started to get close to the 80-year mark with the lease on his ground floor apartment in Accrington. In buying his home 18 years previously, the length of the lease was of minimal bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Archie was able to extend his lease at the eleventh hour in September. Archie and the landlord who owned the flat above eventually settled on sum of £5,500 . If he had missed the deadline, the amount would have increased by at least £1,125.
Last month we were called by Mr and Mrs. G Garcia , who moved into a first floor apartment in Accrington in October 1996. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable properties in Accrington with an extended lease were in the region of £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 9 June 2104. Taking into account 78 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were approached by Dr Hugo Edwards who, having owned a first floor apartment in Accrington in August 2008. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Accrington with 100 year plus lease were valued around £186,000. The average ground rent payable was £65 invoiced annually. The lease finished on 1 April 2084. Considering the 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.