With a long leasehold property in Audley, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Audley with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has fewer than 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Audley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Aaron, came dangerously near to the 80-year threshold with the lease on his studio apartment in Audley. Having bought his flat two decades ago, the length of the lease was of no relevance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Aaron was able to extend his lease at the eleventh hour in June. Aaron and the landlord eventually agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have increased by a minimum £950.
Last May we were phoned by Mr and Mrs. H Scott , who acquired a newly refurbished flat in Audley in May 2005. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Audley with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 collected yearly. The lease end date was in 2091. Having 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Last Autumn we were phoned by Mr U Bennett , who purchased a basement apartment in Audley in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Audley with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed on 7 February 2102. Given that there were 77 years left we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.