Unfortunately that a Acklam residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Acklam property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Acklam will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Acklam with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Acklam leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Tyler, came very near to the 80-year threshold with the lease on his garden flat in Acklam. In buying his home 19 years previously, the unexpired term was of little bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Tyler extended the lease at the eleventh hour last January. Tyler and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had descended lower than eighty years, the figure would have escalated by at least £1,000.
In 2012 we were phoned by Mr T Clarke who, having owned a basement flat in Acklam in March 2005. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical residencies in Acklam with 100 year plus lease were valued about £210,600. The mid-range ground rent payable was £45 billed annually. The lease concluded in 2087. Having 62 years unexpired we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including costs.
Last month we were phoned by Mr and Mrs. E Johnson , who was assigned a lease of a ground floor flat in Acklam in October 1995. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Acklam with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed per annum. The lease expired in 2098. Having 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.