When it comes to domestic leasehold property in Acocks Green, you are in fact renting it for a certain amount of time. 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 should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Acocks Green with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has fewer than 80 years outstanding, under the relevant statute the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Acocks Green with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Acocks Green,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Acocks Green valuers.
Last year Liam, started to get near to the eighty-year mark with the lease on his one bedroom flat in Acocks Green. Having purchased his flat two decades ago, the lease term was of minimal concern. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Liam was able to extend his lease just ahead of time last August. Liam and the freeholder ultimately agreed on a premium of £5,000 . If the lease had fallen to less than eighty years, the price would have gone up by at least £1,100.
Mr and Mrs. W Díaz owned a first floor flat in Acocks Green in April 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Acocks Green with an extended lease were valued around £242,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished on 14 October 2093. Considering the 67 years left we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.
Dr K Vincent completed a garden apartment in Acocks Green in September 2010. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Acocks Green with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed in 2104. Given that there were 78 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.