Why you should commence your Audley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Audley property value

Audley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Audley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Audley you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Audley property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Audley with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders will not issue a mortgage with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Audley property being difficult to sell or refinance.

What makes us experts in Audley lease extensions?

The conveyancing solicitors that we work with handle Audley 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.

Audley Lease Extension Example Cases:

Liam, Audley, Staffordshire

Half a year ago Liam, started to get near to the eighty-year mark with the lease on his leasehold flat in Audley. In buying his flat twenty years ago, the length of the lease was of little interest. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Liam extended the lease just ahead of time last May. Liam and the landlord eventually agreed on a premium of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £975.

Audley case:

Last year we were phoned by Dr B Garcia , who owned a one bedroom apartment in Audley in July 2008. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Audley with a long lease were worth £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease ended in 2082. Having 56 years unexpired we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus costs.

Audley case:

Last Christmas we were phoned by Dr T Mason , who bought a ground floor apartment in Audley in January 2004. The question was if we could estimate the premium would be to extend the lease by ninety years. Identical homes in Audley with an extended lease were valued around £237,600. The mid-range ground rent payable was £45 billed annually. The lease expired in 2093. Given that there were 67 years unexpired we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus professional charges.