The only way is down when it comes to Audlem lease terms. Audlem flats that have a remaining term lower than eighty years will de-escalate in value even faster, and the cost of extending your lease will increase.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Audlem,the lease extension experts that we work with will always be willing 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.
Two years ago Edward, came dangerously near to the eighty-year threshold with the lease on his first floor apartment in Audlem. Having purchased his property 18 years ago, the length of the lease was of no relevance. by good luck, he realised he would imminently be paying an inflated amount for a lease extension. Edward was able to extend his lease just under the wire last January. Edward and the freeholder ultimately settled on sum of £5,000 . If the lease had slid to less than eighty years, the price would have escalated by at least £1,075.
Last Christmas we were contacted by Mrs Amber Turner , who purchased a newly refurbished flat in Audlem in April 2003. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Identical properties in Audlem with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 invoiced per annum. The lease ended on 4 September 2075. Taking into account 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of legals.
Dr P López completed a ground floor apartment in Audlem in August 2002. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Audlem with an extended lease were worth £208,200. The average ground rent payable was £65 invoiced per annum. The lease expiry date was in 2086. Considering the 61 years remaining we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.