Accrington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Accrington tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Accrington you must check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Accrington leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Accrington with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Accrington can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge dealing with Accrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a 2 bedroom apartment in Accrington on the market with a lease of a little over 59 years remaining. Benjamin on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were approached by Mr and Mrs. A Michel who, having moved into a recently refurbished flat in Accrington in July 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar premises in Accrington with a long lease were valued around £168,800. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2081. Taking into account 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
Dr Paige Morel moved into a one bedroom apartment in Accrington in January 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Accrington with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 12 September 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.