As the length of the unexpired term of a Acocks Green domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Acocks Green will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Acocks Green with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Acocks Green leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her basement apartment in Acocks Green, Natalie commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work was finalised in May 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr Jacob Nguyen , who moved into a one bedroom apartment in Acocks Green in November 2012. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Acocks Green with a long lease were valued around £261,600. The average amount of ground rent was £60 billed every twelve months. The lease ended on 19 October 2077. Taking into account 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of costs.
Mr and Mrs. G Adams acquired a ground floor apartment in Acocks Green in July 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar flats in Acocks Green with a long lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2088. Taking into account 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of costs.