Audlem leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Audlem residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Audlem you really ought to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Audlem leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Audlem with over 100 years left 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Audlem,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Audlem valuers.
Subsequent to lengthy negotiations with the freeholder of her studio apartment in Audlem, Lily initiated the lease extension process as the eighty year threshold was fast advancing. The lease extension was finalised in October 2012. The freeholder’s charges were negotiated to less than 600 GBP.
Last Autumn we were called by Dr U Garcia , who was assigned a lease of a one bedroom apartment in Audlem in February 1996. The question was if we could estimate the premium could be for a 90 year lease extension. Similar premises in Audlem with a long lease were valued around £261,600. The average amount of ground rent was £60 billed every twelve months. The lease ran out on 18 August 2078. Taking into account 52 years left we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 plus professional charges.
Last month we were phoned by Mr and Mrs. K Fournier , who completed a first floor apartment in Audlem in October 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Audlem with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected monthly. The lease expired on 11 May 2089. Given that there were 63 years left we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.