Audlem leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Audlem enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Audlem you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Audlem with in excess of one hundred years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Audlem leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her studio flat in Audlem, Kayleigh started the lease extension process as the eighty year threshold was quickly coming. The lease extension was finalised in October 2010. The landlord’s costs were restricted to below 500 GBP.
Last year we were contacted by Mr and Mrs. L Girard , who was assigned a lease of a first floor apartment in Audlem in September 2005. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Audlem with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2098. Taking into account 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last year we were approach by Mr and Mrs. B Martínez , who took over the lease of a first floor flat in Audlem in September 2010. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical residencies in Audlem with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced annually. The lease concluded in 2078. Considering the 53 years unexpired we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus professional charges.