South Acton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in South Acton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in South Acton you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| 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. |
Retaining our service gives you enhanced 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 want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Sebastian, started to get near to the eighty-year mark with the lease on his first floor flat in South Acton. Having purchased his home 18 years previously, the length of the lease was of minimal concern. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Sebastian was able to extend his lease just under the wire last September. Sebastian and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by at least £900.
Mrs Natalie Nguyen was assigned a lease of a purpose-built apartment in South Acton in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in South Acton with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out on 23 November 2098. Taking into account 73 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a South Acton property 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 as at the valuation date was 64.64 years.