Acocks Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Acocks Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Acocks Green you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Acocks Green with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages |
Lease extensions in Acocks Green can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 in-depth market knowledge 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.
Jasper owned a conversion apartment in Acocks Green being sold with a lease of a few days over 72 years remaining. Jasper informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last February we were called by Mr and Mrs. K Davies , who completed a basement flat in Acocks Green in October 2008. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar homes in Acocks Green with a long lease were valued around £250,000. The average amount of ground rent was £50 collected per annum. The lease ended on 21 September 2095. Taking into account 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Mr Mason Howard completed a newly refurbished flat in Acocks Green in September 2003. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable properties in Acocks Green with a long lease were valued around £290,000. The mid-range ground rent payable was £60 billed monthly. The lease elapsed on 4 April 2106. Considering the 80 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.