Acklam leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Acklam will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Acklam with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Acklam lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Samuel was the the leasehold proprietor of a high value apartment in Acklam on the market with a lease of a few days over 72 years left. Samuel on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Dr S Morris purchased a studio flat in Acklam in July 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Acklam with a long lease were worth £270,000. The average amount of ground rent was £55 billed monthly. The lease lapsed in 2102. Having 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last January we were e-mailed by Ms Shannon Clarke , who purchased a recently refurbished apartment in Acklam in May 2003. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical premises in Acklam with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £65 billed quarterly. The lease terminated in 2081. Considering the 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.