For those whose Accrington property is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
Leasehold premises in Accrington with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Accrington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Accrington valuers.
After protracted correspondence with the landlord of her purpose-built apartment in Accrington, Morgan commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work completed in November 2013. The landlord’s charges were restricted to less than six hundred pounds.
In 2011 we were contacted by Mr and Mrs. N Torres who, having acquired a one bedroom apartment in Accrington in March 2003. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Accrington with a long lease were in the region of £168,800. The average ground rent payable was £60 billed quarterly. The lease terminated on 7 August 2080. Having 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Last Summer we were e-mailed by Dr Freya Hill , who bought a recently refurbished apartment in Accrington in June 2003. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical properties in Accrington with 100 year plus lease were valued about £235,200. The average ground rent payable was £45 billed annually. The lease finished on 19 June 2091. Given that there were 66 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.