Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Ackworth. Clearly, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Ackworth have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give due deliberation before putting off your Ackworth lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Ackworth with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ackworth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ackworth valuers.
In 2014 Aarav, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Ackworth. In buying his flat twenty years previously, the length of the lease was of minimal significance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Aarav extended the lease at the eleventh hour last July. Aarav and the freeholder eventually settled on the final figure of £5,000 . If the lease had gone below eighty years, the figure would have gone up by at least £850.
Dr A Wood owned a first floor flat in Ackworth in November 1999. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable premises in Ackworth with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected per annum. The lease expired on 24 March 2079. Considering the 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of expenses.
Mr and Mrs. M Moore acquired a garden apartment in Ackworth in May 2002. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Ackworth with a long lease were valued about £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2089. Taking into account 63 years unexpired we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.