The market value of a leasehold property in Accrington is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed ahead of the eighty year mark. Leasehold Reform legislation entitles Accrington qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Accrington with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Accrington can be a difficult process. We recommend you secure 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 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.
In recent months Sebastian, started to get close to the 80-year mark with the lease on his leasehold apartment in Accrington. Having bought his flat twenty years previously, the lease term was of little bearing. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Sebastian was able to extend his lease just ahead of time last April. Sebastian and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he not met the deadline, the sum would have gone up by at least £975.
Last Spring we were called by Mr and Mrs. H Peterson , who was assigned a lease of a one bedroom apartment in Accrington in May 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Accrington with a long lease were valued about £176,200. The average amount of ground rent was £65 billed yearly. The lease concluded on 22 August 2082. Given that there were 56 years left we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus costs.
In 2010 we were e-mailed by Mr H Harris who, having was assigned a lease of a garden flat in Accrington in January 2007. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable homes in Accrington with a long lease were in the region of £237,600. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2093. Having 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.