Accrington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Accrington tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Accrington you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Accrington with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| TSB |
Regardless 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 experience and the close ties they enjoy with Accrington valuers.
Subsequent to protracted discussions with the landlord of her studio apartment in Accrington, Natalie commenced the lease extension process as the 80 year threshold was fast approaching. The legal work completed in July 2008. The freeholder’s fees were kept to an absolute minimum.
Dr Kayleigh Davis completed a first floor flat in Accrington in May 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative properties in Accrington with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed on 14 March 2097. Considering the 71 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last Spring we were contacted by Dr M Baker , who was assigned a lease of a first floor apartment in Accrington in May 2004. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative properties in Accrington with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated on 3 October 2077. Having 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 plus costs.