Why you should start your Audlem lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to start your Audlem lease extension today:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/audlem">Audlem</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p> The market value of Audlem leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than 80 years
<h4>Audlem property with a lease extension has roughly the same value as a freehold</h4>
<p>
Leasehold premises in Audlem with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it. <h4>Lending institutions may decide not to finance a property on a short lease</h4> Lending institutions have specific criteria when lending funds secured on leasehold property. Some will simply not lend at all once the remaining lease term falls lower than a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Audlem property.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
<tr>
<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
</tr>
<tr>
<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
Why use us for your lease extension in Audlem? </h4>
<p>
The conveyancing solicitors that we work with handle Audlem 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 conveyancing solicitor we work with provide it.
<h4>
Audlem Lease Extension Example Cases:
</h4>
<h5> Ben, Audlem, Cheshire,</h5>
<p>
Ben owned a conversion apartment in Audlem being marketed with a lease of a little over 59 years left. Ben on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
<h5>Audlem case:</h5>
<p>
Last May we were called by Mr and Mrs. E González , who
moved into a basement flat in Audlem in April 2007. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparable residencies in Audlem with a long lease were in the region of £232,800. The mid-range ground rent payable was £45 invoiced monthly. The lease expired in 2091. Considering the 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
<h5>Audlem case:</h5>
<p>
Last January we were contacted by Mrs H Carter , who
acquired a purpose-built flat in Audlem in January 1999. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable residencies in Audlem with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish on 24 May 2102. Having 76 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
</div>