Unfortunately that a Audlem residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Audlem property prices.Where your lease has approximately 90 years left, you need to start thinking about 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 below eighty years - otherwise a higher amount will be due. The majority of flat owners in Audlem will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Audlem can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Audlem lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her ground floor flat in Audlem, Freya commenced the lease extension process as the 80 year threshold was quickly coming. The transaction completed in March 2015. The landlord’s fees were kept to an absolute minimum.
Dr I Nelson owned a first floor apartment in Audlem in May 1996. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar properties in Audlem with an extended lease were valued around £200,800. The average amount of ground rent was £65 collected every twelve months. The lease finished in 2086. Considering the 60 years unexpired we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of costs.
Dr K Martinez moved into a one bedroom flat in Audlem in August 2005. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Audlem with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out on 20 July 2097. Having 71 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.