The value of Acocks Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Acocks Green can be a difficult process. We recommend you obtain professional help from a conveyancer 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 procuring 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.
After lengthy discussions with the freeholder of her ground floor apartment in Acocks Green, Freya commenced the lease extension process as the 80 year deadline was swiftly approaching. The transaction was concluded in February 2005. The landlord’s charges were negotiated to about 600 pounds.
In 2013 we were contacted by Dr S Anderson who, having was assigned a lease of a purpose-built apartment in Acocks Green in January 2004. The question was if we could approximate the premium would be for a 90 year lease extension. Identical homes in Acocks Green with an extended lease were worth £173,800. The average ground rent payable was £60 collected quarterly. The lease ran out in 2081. Taking into account 55 years unexpired we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
In 2013 we were approached by Mr S Díaz who, having was assigned a lease of a recently refurbished flat in Acocks Green in June 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Acocks Green with a long lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease concluded in 2092. Given that there were 66 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.