With a domestic leasehold property in Acocks Green, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Anyone in Acocks Green with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has below eighty years left, under the current Act the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Acocks Green with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Acocks Green can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Acocks Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel was the the leasehold proprietor of a studio flat in Acocks Green being marketed with a lease of just over 72 years outstanding. Samuel on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mrs Madeleine Watson bought a recently refurbished apartment in Acocks Green in July 1999. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar premises in Acocks Green with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2104. Given that there were 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Last Winter we were approach by Dr R Robinson , who purchased a one bedroom apartment in Acocks Green in November 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable properties in Acocks Green with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded on 16 February 2084. Considering the 59 years outstanding we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.