Acton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Acton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Acton you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Acton leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Acton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Acton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Acton valuers.
Trailing unsuccessful correspondence with the landlord of her garden flat in Acton, Isobel commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was concluded in April 2012. The landlord’s fees were restricted to approximately six hundred pounds.
Mr and Mrs. W Thomas purchased a garden flat in Acton in October 2001. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Acton with an extended lease were valued around £254,200. The average ground rent payable was £60 collected yearly. The lease came to a finish on 8 March 2075. Given that there were 51 years unexpired we calculated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Acton property is 4 Woodhurst Road in July 2013. The Tribunals valuation for the premium to be paid in respect of the collective enfranchisement was £51,050. This case related to 2 flats. The unexpired residue of the current lease was 63.75 years.