Acocks Green leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Acocks Green will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Acocks Green,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Acocks Green valuers.
After unsuccessful negotiations with the landlord of her one bedroom flat in Acocks Green, Chloe started the lease extension process as the eighty year threshold was quickly advancing. The legal work was concluded in March 2013. The landlord’s costs were kept to an absolute minimum.
Last Summer we were phoned by Mr Mason Vincent , who owned a one bedroom apartment in Acocks Green in June 2009. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable properties in Acocks Green with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2097. Taking into account 72 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
In 2011 we were contacted by Mr and Mrs. C Scott who, having completed a basement apartment in Acocks Green in June 2004. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical properties in Acocks Green with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 collected annually. The lease lapsed in 2077. Considering the 52 years outstanding we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.