Acle leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Acle tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Acle you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service gives you increased control over the value of your Acle leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her first floor flat in Acle, Isabella initiated the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in May 2012. The landlord’s fees were negotiated to less than 700 pounds.
In 2012 we were e-mailed by Dr G David who, having was assigned a lease of a studio flat in Acle in February 2001. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Acle with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 4 August 2089. Considering the 63 years left we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of fees.
Mr B Ramírez took over the lease of a one bedroom flat in Acle in March 2000. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical residencies in Acle with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected per annum. The lease ended on 21 April 2100. Having 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.