South Acton leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in South Acton will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in South Acton with over 100 years left 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your South Acton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Alex, came seriously close to the eighty-year threshold with the lease on his leasehold apartment in South Acton. In buying his property 19 years ago, the unexpired term was of minimal significance. by good luck, he recognised he needed to take action soon on a lease extension. Alex was able to extend his lease just in the nick of time in September. Alex and the freeholder via the managing agents in the end settled on sum of £5,500 . If he not met the deadline, the price would have increased by at least £1,025.
Mr and Mrs. V Hill was assigned a lease of a one bedroom apartment in South Acton in August 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable premises in South Acton with an extended lease were worth £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 4 July 2079. Having 54 years remaining we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a South Acton flat is 169 Southfield Road in September 2013. the tribunal decided that the premium to be paid in respect of the collective enfranchisement should be £51,203 This case related to 2 flats. The unexpired term was 64.64 years.