With a long leasehold premises in Acocks Green, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Acocks Green with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years left, under the current statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB |
The lawyers that we work with handle 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.
Half a year ago Edward, started to get near to the 80-year threshold with the lease on his one bedroom flat in Acocks Green. In buying his home two decades ago, the lease term was of little relevance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Edward arranged for a lease extension just under the wire last January. Edward and the freeholder subsequently settled on an amount of £5,500 . If the lease had dropped to less than 80 years, the figure would have escalated by a minimum £850.
Mr and Mrs. P Brown bought a garden flat in Acocks Green in September 1998. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative residencies in Acocks Green with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected yearly. The lease finished in 2076. Taking into account 50 years left we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus legals.
Dr Alex Nelson bought a ground floor apartment in Acocks Green in August 2001. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative homes in Acocks Green with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected monthly. The lease finished in 2087. Having 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including professional charges.