The market value of a leasehold property in Accrington is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised well before the 80 year mark. Current legislation entitles Accrington qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Accrington with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Accrington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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.
Ibrahim was the the leasehold owner of a studio flat in Accrington being sold with a lease of a little over 61 years unexpired. Ibrahim on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
Last year we were called by Dr Oscar García , who owned a purpose-built flat in Accrington in November 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparable premises in Accrington with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 invoiced monthly. The lease finished in 2077. Considering the 51 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 not including legals.
Mr and Mrs. D Davies acquired a purpose-built flat in Accrington in August 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable residencies in Accrington with an extended lease were valued around £210,600. The average amount of ground rent was £45 billed yearly. The lease finished on 9 August 2088. Given that there were 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.