Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Audley. Inevitably, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Audley have the right to extend the lease for a further 90 years under statute. You should give careful consideration before delaying your Audley lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Audley with over one hundred years outstanding on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you better control over the value of your Audley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold owner of a 2 bedroom apartment in Audley being marketed with a lease of just over 59 years outstanding. Caleb on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. T Gómez moved into a one bedroom flat in Audley in November 2005. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical flats in Audley with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 21 July 2087. Taking into account 61 years left we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Last Spring we were contacted by Dr Jordan Cook , who bought a one bedroom flat in Audley in March 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Audley with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed per annum. The lease termination date was in 2098. Given that there were 72 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.