West Acton leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in West Acton will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in West Acton with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your West Acton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Dexter, came dangerously close to the 80-year threshold with the lease on his basement flat in West Acton. In buying his home two decades ago, the unexpired term was of no bearing. Luckily, he became aware that he needed to take steps soon on Extending the lease. Dexter was able to extend his lease at the eleventh hour last April. Dexter and the freeholder via the management company eventually settled on a premium of £6,000 . If the lease had slipped below eighty years, the price would have escalated by at least £1,100.
In 2014 we were e-mailed by Mr and Mrs. U González who, having was assigned a lease of a studio flat in West Acton in September 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in West Acton with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended on 17 May 2104. Taking into account 78 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last month we were contacted by Dr K Pérez , who purchased a basement apartment in West Acton in March 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in West Acton with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 collected monthly. The lease ended on 15 August 2093. Given that there were 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.