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 not fully appreciated in the first few years due to the deflation being disguised by increases in the Audlem property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Audlem will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Audlem,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Audlem valuers.
Gabriel owned a studio apartment in Audlem on the market with a lease of a little over 59 years left. Gabriel on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Mr I Michel who, having bought a one bedroom flat in Audlem in January 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Audlem with 100 year plus lease were valued about £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated in 2085. Taking into account 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.
In 2009 we were approached by Mr and Mrs. I François who, having moved into a studio flat in Audlem in June 1999. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable flats in Audlem with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 17 March 2096. Having 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.