Acocks Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Acocks Green residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Acocks Green you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Acocks Green,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Acocks Green valuers.
In 2014 Harrison, started to get near to the eighty-year mark with the lease on his leasehold flat in Acocks Green. In buying his home two decades ago, the lease term was of no concern. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. Harrison was able to extend his lease just under the wire last August. Harrison and the landlord subsequently settled on an amount of £6,000 . If the lease had slid to less than eighty years, the figure would have gone up by at least £1,150.
Last June we were called by Mr Stanley André , who took over the lease of a ground floor apartment in Acocks Green in March 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Acocks Green with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 invoiced yearly. The lease finished in 2085. Considering the 59 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.
Last Winter we were contacted by Ms Danielle Jackson , who was assigned a lease of a purpose-built apartment in Acocks Green in September 2000. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Acocks Green with an extended lease were valued around £255,000. The average amount of ground rent was £50 billed every twelve months. The lease termination date was on 5 March 2096. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 plus expenses.