As the the remaining lease term of a Audlem residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Audlem will qualify for this right; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Subsequent to lengthy negotiations with the landlord of her first floor apartment in Audlem, Mia started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction was concluded in July 2010. The landlord’s charges were kept to an absolute minimum.
Last September we were e-mailed by Dr Aarav Sharif , who acquired a studio flat in Audlem in June 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical flats in Audlem with an extended lease were in the region of £254,200. The average ground rent payable was £60 invoiced monthly. The lease expired on 12 June 2077. Taking into account 51 years left we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including costs.
In 2014 we were contacted by Mr Y David who, having completed a purpose-built apartment in Audlem in January 2006. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable homes in Audlem with an extended lease were worth £210,600. The average ground rent payable was £45 invoiced annually. The lease termination date was on 21 May 2088. Considering the 62 years left we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus costs.