It’s a harsh truth that a Acocks Green residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Acocks Green property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Acocks Green will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Acocks Green can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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.
Nathaniel owned a conversion apartment in Acocks Green being sold with a lease of a little over 72 years unexpired. Nathaniel informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. O Flores who, having took over the lease of a garden flat in Acocks Green in October 2011. The question was if we could approximate the price would be for a 90 year lease extension. Comparable homes in Acocks Green with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended in 2081. Considering the 57 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2010 we were phoned by Mrs R Thompson who, having was assigned a lease of a recently refurbished flat in Acocks Green in April 2010. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Acocks Green with an extended lease were worth £250,000. The average ground rent payable was £50 billed yearly. The lease terminated on 19 July 2092. Having 68 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.