It’s a harsh certainty that a Acrefair residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Acrefair property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most flat owners in Acrefair will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Acrefair leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy negotiations with the landlord of her purpose-built apartment in Acrefair, Kelsey initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction was finalised in January 2006. The freeholder’s costs were kept to an absolute minimum.
Mr Oliver Thompson owned a ground floor flat in Acrefair in April 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Acrefair with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2100. Having 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Mr and Mrs. J Fournier took over the lease of a purpose-built apartment in Acrefair in October 1998. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable homes in Acrefair with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease termination date was on 15 May 2080. Having 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.