It’s a harsh truth that a Acle residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Acle property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Acle will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Acle,the lease extension lawyers 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 Acle valuers.
Last Spring Luke, came precariously near to the 80-year threshold with the lease on his first floor flat in Acle. In buying his property 19 years ago, the unexpired term was of no interest. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Luke was able to extend his lease just under the wire last June. Luke and the freeholder via the management company in the end agreed on a premium of £5,500 . If the lease had slipped lower than 80 years, the figure would have increased by at least £900.
Mr and Mrs. L Johnson took over the lease of a first floor apartment in Acle in March 2003. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar residencies in Acle with an extended lease were worth £235,200. The average ground rent payable was £45 collected annually. The lease lapsed on 12 September 2092. Given that there were 66 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
In 2011 we were approached by Mr and Mrs. C Roberts who, having purchased a newly refurbished flat in Acle in July 1999. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Acle with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2103. Taking into account 77 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.