For anyone whose Acocks Green home is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Acocks Green can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with 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.
Half a year ago Adam, started to get close to the 80-year threshold with the lease on his purpose- built flat in Acocks Green. Having purchased his property two decades ago, the lease term was of no bearing. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Adam was able to extend his lease just under the wire last June. Adam and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had descended to less than 80 years, the price would have increased by a minimum £900.
Mr and Mrs. C Gómez owned a purpose-built apartment in Acocks Green in November 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Acocks Green with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 billed every twelve months. The lease concluded on 11 July 2085. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus fees.
Last Christmas we were approach by Mr and Mrs. Y Howard , who purchased a recently refurbished flat in Acocks Green in October 2006. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar residencies in Acocks Green with a long lease were in the region of £260,000. The average ground rent payable was £50 billed quarterly. The lease elapsed in 2096. Considering the 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.