The nearer a domestic lease in Axminster gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Axminster will qualify for this right; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Axminster with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Axminster,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Axminster valuers.
In the wake of eight months of lengthy negotiations with the landlord of her purpose-built apartment in Axminster, Chloe started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was finalised in July 2005. The freeholder’s costs were restricted to under 550 pounds.
Mrs J André took over the lease of a purpose-built apartment in Axminster in September 2009. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Axminster with a long lease were valued around £275,000. The average amount of ground rent was £45 collected quarterly. The lease expiry date was on 2 June 2094. Considering the 69 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
Last Autumn we were approach by Ms Phoebe Ward , who owned a studio apartment in Axminster in October 2009. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Axminster with an extended lease were valued about £216,000. The average amount of ground rent was £60 collected per annum. The lease elapsed on 8 November 2083. Taking into account 58 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.