The market value of a leasehold property in Acle depends on how long the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year mark. Statute entitles Acle qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
The lawyers that we work with undertake Acle 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 lawyer we work with provide it.
Leo was the the leasehold proprietor of a studio flat in Acle on the market with a lease of just over 59 years outstanding. Leo on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give 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 payable on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were phoned by Mr and Mrs. L Davis who, having took over the lease of a newly refurbished flat in Acle in August 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar properties in Acle with an extended lease were worth £254,200. The average ground rent payable was £60 billed every twelve months. The lease ran out on 1 June 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus legals.
Last month we were contacted by Mr and Mrs. V Lefebvre , who completed a garden flat in Acle in July 2002. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative premises in Acle with an extended lease were in the region of £215,600. The average amount of ground rent was £45 invoiced yearly. The lease ran out in 2088. Taking into account 62 years outstanding we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus legals.