Chances are that where you own a flat in Accrington you actually own a long leasehold interest over your property
Leasehold properties in Accrington with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Accrington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ali, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Accrington. In buying his flat two decades ago, the length of the lease was of little relevance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Ali was able to extend his lease at the eleventh hour in June. Ali and the freeholder via the managing agents eventually agreed on sum of £6,000 . If he had missed the deadline, the figure would have escalated by at least £925.
Dr Jessica Thompson moved into a purpose-built flat in Accrington in November 2003. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative premises in Accrington with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed on 3 May 2075. Taking into account 50 years unexpired we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 plus legals.
Last Spring we were approach by Dr Abbie Stewart , who moved into a studio flat in Accrington in May 2009. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Accrington with an extended lease were in the region of £203,200. The average ground rent payable was £65 billed annually. The lease finished in 2086. Considering the 61 years left we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.