Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Acocks Green. Inevitably, the length of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Acocks Green have the legal entitlement to extend the lease for a further ninety years under legislation. Please give careful deliberation before putting off your Acocks Green lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Acocks Green with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancers that we work with handle Acocks Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Arthur was the the leasehold owner of a conversion flat in Acocks Green being sold with a lease of just over sixty years outstanding. Arthur on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last February we were phoned by Mr and Mrs. U Khan , who completed a recently refurbished flat in Acocks Green in August 2004. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Acocks Green with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 invoiced annually. The lease finished in 2087. Taking into account 61 years left we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.
In 2013 we were phoned by Mr F Moreau who, having moved into a newly refurbished flat in Acocks Green in May 2010. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Acocks Green with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed on 19 August 2098. Taking into account 72 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.