The market value of Accrington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than 80 years
Leasehold premises in Accrington with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake 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.
Trailing unsuccessful negotiations with the landlord of her two bedroom flat in Accrington, Ellie commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in October 2006. The landlord’s costs were negotiated to slightly above four hundred GBP.
Last Summer we were approach by Mr and Mrs. E Laurent , who completed a garden flat in Accrington in April 1999. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Similar properties in Accrington with an extended lease were worth £275,000. The average amount of ground rent was £55 invoiced monthly. The lease expired on 9 September 2102. Considering the 76 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last year we were called by Ms F Campbell , who was assigned a lease of a basement apartment in Accrington in October 1998. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Similar properties in Accrington with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 billed per annum. The lease concluded in 2082. Taking into account 56 years unexpired we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.