For those whose Audlem home is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Audlem,the lease extension lawyers that we work with will always be prepared 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.
Ibrahim owned a 2 bedroom flat in Audlem being marketed with a lease of a little over 59 years outstanding. Ibrahim on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr Samantha Wood was assigned a lease of a one bedroom flat in Audlem in October 2002. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Audlem with 100 year plus lease were in the region of £242,600. The average ground rent payable was £45 invoiced monthly. The lease expired in 2093. Considering the 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including legals.
Last January we were called by Mr and Mrs. U Wright , who moved into a ground floor apartment in Audlem in September 2009. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical properties in Audlem with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was in 2104. Considering the 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.