Unfortunately that a Audlem residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Audlem property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips below 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 The majority of flat owners in Audlem will be able to extend under the legislation; however a lawyer 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 be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Audlem with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Joseph owned a high value apartment in Audlem being sold with a lease of just over sixty years outstanding. Joseph on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Joseph to invoke his statutory right. Joseph procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were contacted by Ms J Parker who, having purchased a newly refurbished flat in Audlem in May 2004. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Audlem with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £55 billed monthly. The lease termination date was on 14 February 2101. Considering the 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Last Christmas we were phoned by Dr Aarav Martinez , who completed a first floor apartment in Audlem in January 2002. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Audlem with an extended lease were worth £173,800. The average ground rent payable was £65 invoiced per annum. The lease lapsed on 17 March 2081. Having 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.