Unfortunately that a Audlem residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Audlem property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Audlem will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Audlem can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Audlem lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the landlord of her two bedroom flat in Audlem, Francesca initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was finalised in January 2009. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. J Anderson who, having completed a one bedroom flat in Audlem in August 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Audlem with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 collected per annum. The lease expired in 2082. Having 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus professional charges.
Mrs Katherine Rose completed a studio apartment in Audlem in March 2000. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Audlem with an extended lease were worth £242,600. The average ground rent payable was £45 invoiced monthly. The lease came to a finish in 2093. Given that there were 67 years remaining we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.