Accrington 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 becomes more expensive. The majority of owners of residential leasehold property in Accrington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Accrington you really ought to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Accrington leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Accrington with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Retaining our service gives you enhanced control over the value of your Accrington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her two bedroom flat in Accrington, Bethan started the lease extension process as the 80 year mark was rapidly approaching. The lease extension completed in October 2006. The landlord’s costs were restricted to below four hundred GBP.
Dr C Wood bought a first floor flat in Accrington in September 2003. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar premises in Accrington with a long lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease lapsed in 2095. Considering the 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. B Bertrand completed a purpose-built apartment in Accrington in January 2000. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Accrington with an extended lease were worth £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 22 July 2075. Having 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including costs.