There is no doubt about it a leasehold property in Accrington is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Accrington will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Lewis owned a 2 bedroom apartment in Accrington being marketed with a lease of a few days over sixty years unexpired. Lewis on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last June we were phoned by Ms Harriet Richardson , who owned a newly refurbished apartment in Accrington in February 2008. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Accrington with an extended lease were valued around £275,000. The average ground rent payable was £55 collected every twelve months. The lease elapsed on 3 August 2102. Taking into account 77 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Mr Aarav Norbert purchased a ground floor flat in Accrington in September 2004. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative flats in Accrington with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished in 2082. Taking into account 57 years outstanding we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.