The only way is down when it comes to South Acton lease terms. South Acton leaseholds that have a remaining term fewer than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure South 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 conveyancer we work with provide it.
After lengthy discussions with the landlord of her first floor flat in South Acton, Sophia initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension completed in April 2010. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. C Gómez was assigned a lease of a one bedroom flat in South Acton in June 2011. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar properties in South Acton with a long lease were valued about £176,200. The average ground rent payable was £65 billed quarterly. The lease expired in 2082. Taking into account 56 years remaining we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.
An example of a Freehold Enfranchisement decision for a South Acton residence 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.