As the length of the unexpired term of a East Acton domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in East Acton will qualify for this right; that being said a conveyancer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
The lawyers that we work with procure East Acton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Blake, came critically close to the eighty-year mark with the lease on his studio flat in East Acton. In buying his property 19 years previously, the length of the lease was of little relevance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Blake was able to extend his lease just under the wire last June. Blake and the freeholder subsequently agreed on an amount of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £1,100.
In 2013 we were approached by Ms Lauren Ricardo who, having completed a purpose-built flat in East Acton in October 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar properties in East Acton with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded in 2099. Having 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a East Acton residence is 49 Long Drive in March 2014. The tribunal concluded that the price payable for the freehold interest in the Property should be £26,491 divided as to £12,546 in respect of the ground floor flat and £13,945 in respect of the first floor flat This case was in relation to 2 flats. The unexpired lease term was 68.47 years.