Acocks Green leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be payable. Flat owners in Acocks Green will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Acocks Green can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 dealing with Acocks Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her garden apartment in Acocks Green, Samantha initiated the lease extension process as the eighty year threshold was swiftly coming. The lease extension was concluded in November 2008. The landlord’s fees were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. V Ali , who was assigned a lease of a one bedroom apartment in Acocks Green in February 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable premises in Acocks Green with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease concluded on 25 October 2075. Given that there were 51 years remaining we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of costs.
In 2011 we were phoned by Mr Liam López who, having bought a basement apartment in Acocks Green in March 2010. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Acocks Green with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2086. Considering the 62 years remaining we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.