Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Acrefair. Inevitably, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Acrefair have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful attention before putting off your Acrefair lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Acrefair with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 conveyancer and surveyor 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.
Last Spring Dexter, came perilously near to the 80-year mark with the lease on his first floor apartment in Acrefair. Having purchased his flat 19 years previously, the length of the lease was of little relevance. As luck would have it, he realised he needed to take action soon on Extending the lease. Dexter was able to extend his lease just ahead of time last September. Dexter and the landlord ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £975.
Last Winter we were e-mailed by Mr and Mrs. A Wood , who owned a one bedroom flat in Acrefair in March 1995. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable homes in Acrefair with a long lease were worth £264,000. The average ground rent payable was £60 collected yearly. The lease lapsed on 26 April 2078. Considering the 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus professional charges.
In 2013 we were called by Mr and Mrs. L White who, having moved into a ground floor flat in Acrefair in May 2004. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Acrefair with a long lease were in the region of £225,400. The average ground rent payable was £45 invoiced per annum. The lease elapsed on 22 July 2089. Considering the 64 years outstanding we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including professional charges.