Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Acocks Green. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Acocks Green have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Acocks Green lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold premises in Acocks Green with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Acocks Green,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Acocks Green valuers.
Subsequent to lengthy correspondence with the landlord of her one bedroom apartment in Acocks Green, Robyn initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in March 2013. The freeholder’s costs were restricted to below four hundred pounds.
Last September we were e-mailed by Mr Joseph Johnson , who completed a studio flat in Acocks Green in April 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Acocks Green with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed on 3 April 2104. Taking into account 78 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Last Spring we were approach by Dr C Robinson , who acquired a one bedroom apartment in Acocks Green in November 2002. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Acocks Green with an extended lease were in the region of £191,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out in 2084. Given that there were 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including expenses.