The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Acocks Green have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Acocks Green lease extension. Putting off the costs today simply escalates the price you will eventually have to pay for a lease extension.
Leasehold premises in Acocks Green with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
In the wake of 9 months of protracted discussions with the landlord of her first floor flat in Acocks Green, Alexandra initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The lease extension was concluded in October 2013. The landlord’s costs were kept to an absolute minimum.
Dr Yasmin Garcia bought a ground floor flat in Acocks Green in June 2009. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Identical properties in Acocks Green with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2097. Having 71 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Dr C James completed a first floor apartment in Acocks Green in January 1998. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative premises in Acocks Green with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 billed per annum. The lease finished on 12 August 2077. Taking into account 51 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including expenses.