There is no doubt about it a leasehold flat or house in Acrefair is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Acrefair will qualify for this right; that being said a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Acrefair with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Acrefair can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 Acrefair lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the freeholder of her one bedroom flat in Acrefair, Phoebe started the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction was finalised in May 2012. The landlord’s fees were kept to an absolute minimum.
Last June we were approach by Ms Alisha Hall , who purchased a studio apartment in Acrefair in June 2007. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Acrefair with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced monthly. The lease came to a finish on 28 October 2097. Taking into account 72 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Summer we were contacted by Mr and Mrs. B González , who completed a basement flat in Acrefair in January 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative residencies in Acrefair with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 billed yearly. The lease concluded on 2 May 2077. Given that there were 52 years left we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of expenses.