It’s an underpublicised certainty that a Accrington residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Accrington property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Accrington will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Accrington can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Accrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her purpose-built flat in Accrington, Abbie commenced the lease extension process as the eighty year threshold was rapidly coming. The transaction was concluded in June 2012. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were called by Dr R Lefèvre who, having completed a ground floor apartment in Accrington in March 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Accrington with a long lease were worth £218,000. The average amount of ground rent was £45 billed yearly. The lease terminated on 1 May 2089. Taking into account 63 years left we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.
In 2014 we were phoned by Dr F Scott who, having was assigned a lease of a basement flat in Accrington in November 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Accrington with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated on 5 April 2100. Given that there were 74 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.