It’s a harsh certainty that a Audlem residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Audlem property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Audlem will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow 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 residential leasehold with in excess of one hundred 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 premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Audlem can be a difficult process. We recommend you secure professional help from a lawyer and valuer 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 in-depth market knowledge 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 lengthy correspondence with the freeholder of her basement apartment in Audlem, Amy started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension completed in September 2011. The freeholder’s charges were restricted to about 600 GBP.
Mr and Mrs. N Moreau completed a newly refurbished flat in Audlem in May 2006. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical premises in Audlem with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £65 collected annually. The lease expiry date was on 14 July 2081. Having 55 years unexpired we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Mr N Nelson owned a studio flat in Audlem in March 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Similar homes in Audlem with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease ran out on 10 January 2092. Having 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.