With a domestic leasehold premises in Acton, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Acton with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Acton can be a difficult process. We recommend you obtain professional help from a lawyer 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 dealing with Acton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan was the the leasehold owner of a 2 bedroom flat in Acton being sold with a lease of just over 61 years outstanding. Nathan on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were e-mailed by Dr Caleb Mercier who, having purchased a garden flat in Acton in August 2002. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable properties in Acton with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease came to a finish on 2 October 2101. Given that there were 75 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
An example of a Freehold Enfranchisement decision for a Acton property is 4 Woodhurst Road in July 2013. The Tribunals valuation for the premium to be paid in respect of the collective enfranchisement was £51,050. This case was in relation to 2 flats. The unexpired residue of the current lease was 63.75 years.