Chances are that where you own a flat in Audlem you actually own a long leasehold interest over your property
Leasehold residencies in Audlem with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Half a year ago Theo, came seriously close to the 80-year mark with the lease on his one bedroom flat in Audlem. Having purchased his flat twenty years previously, the lease term was of minimal concern. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Theo was able to extend his lease at the eleventh hour in January. Theo and the freeholder via the management company in the end agreed on the final figure of £6,000 . If the lease had slipped lower than 80 years, the figure would have escalated by at least £975.
Mr and Mrs. A Rose took over the lease of a one bedroom apartment in Audlem in January 1997. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Audlem with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished on 2 January 2097. Considering the 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Dr John Jackson acquired a studio flat in Audlem in June 2000. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar premises in Audlem with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease finished on 15 January 2076. Considering the 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus expenses.