When it comes to domestic leasehold property in Audlem, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years remaining. Residents in Audlem with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has fewer than eighty years outstanding, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Audlem with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 Owen, came critically close to the 80-year threshold with the lease on his first floor apartment in Audlem. In buying his home two decades ago, the unexpired term was of minimal interest. Fortunately, he noticed he needed to take action soon on Extending the lease. Owen was able to extend his lease at the eleventh hour in September. Owen and the freeholder ultimately settled on sum of £6,000 . If the lease had fallen lower than 80 years, the sum would have become more costly by a minimum £1,100.
In 2009 we were e-mailed by Dr H Brooks who, having acquired a one bedroom apartment in Audlem in October 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical homes in Audlem with 100 year plus lease were valued around £198,400. The average ground rent payable was £65 invoiced yearly. The lease ended in 2084. Having 59 years remaining we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.
Last Christmas we were phoned by Mr and Mrs. M Phillips , who purchased a garden apartment in Audlem in February 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical residencies in Audlem with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed monthly. The lease concluded on 4 November 2095. Having 70 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.