With a long leasehold premises in Accrington, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years remaining. Leasehold owners in Accrington with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Accrington with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Accrington can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 procuring Accrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Blake, came precariously near to the 80-year mark with the lease on his ground floor flat in Accrington. Having bought his flat 18 years previously, the length of the lease was of minimal significance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Blake extended the lease at the eleventh hour last May. Blake and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £1,125.
Last Summer we were approach by Dr Charlotte Michel , who purchased a purpose-built flat in Accrington in April 2007. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Accrington with an extended lease were in the region of £186,000. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2083. Having 58 years left we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including professional charges.
Mr Muhammad Gunderson acquired a ground floor flat in Accrington in March 2002. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Accrington with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed on 27 September 2094. Given that there were 69 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.