There is no doubt about it a leasehold property in Accrington is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining 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 reason why you should extend the lease sooner than later. The majority of flat owners in Accrington will qualify for this right; that being said a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| The Mortgage Works |
Retaining our service gives you enhanced control over the value of your Accrington leasehold, as your property will be more valuable and marketable in relation to the 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.
Leo was the the leasehold proprietor of a 2 bedroom apartment in Accrington being marketed with a lease of a few days over 61 years remaining. Leo informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and secured satisfactory resolution informally and sell the property.
Mr Rory Murphy moved into a studio flat in Accrington in April 2000. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Accrington with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2105. Considering the 79 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Last year we were called by Mrs Aimee Anderson , who purchased a one bedroom flat in Accrington in April 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Accrington with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 billed every twelve months. The lease ended on 21 February 2085. Given that there were 59 years remaining we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of legals.