As the length of the unexpired term of a Acle domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Acle will meet the qualifying criteria; that being said a conveyancer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Acle,the lease extension experts 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 Acle valuers.
16 months ago Alfie, came seriously close to the eighty-year threshold with the lease on his garden apartment in Acle. Having purchased his home 19 years ago, the lease term was of no concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Alfie was able to extend his lease just in the nick of time last July. Alfie and the landlord eventually settled on a premium of £5,500 . If the lease had slid to less than 80 years, the amount would have increased by at least £1,100.
In 2010 we were contacted by Mr and Mrs. O Cook who, having bought a garden flat in Acle in October 2004. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable homes in Acle with an extended lease were in the region of £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease finished in 2087. Considering the 62 years remaining we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
Last Summer we were e-mailed by Mr and Mrs. U Johnson , who acquired a basement flat in Acle in May 2008. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Acle with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced yearly. The lease finished on 14 August 2098. Given that there were 73 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.