It’s a harsh truth that a Acklam residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Acklam property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Acklam will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Acklam with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Acklam,the lease extension lawyers 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 Acklam valuers.
In 2014 Zachary, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Acklam. In buying his flat two decades ago, the unexpired term was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Zachary extended the lease just under the wire last March. Zachary and the landlord who owned the flat above eventually settled on an amount of £5,500 . If the lease had dropped lower than eighty years, the figure would have become more exhorbitant by a minimum £1,025.
Last Autumn we were contacted by Mr and Mrs. O King , who bought a one bedroom apartment in Acklam in May 1998. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Acklam with 100 year plus lease were worth £237,600. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded in 2092. Considering the 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.
Last month we were called by Ms K Morris , who took over the lease of a ground floor flat in Acklam in January 2007. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Acklam with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed every twelve months. The lease came to a finish on 15 May 2103. Having 78 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.