When it comes to residential leasehold premises in Audley, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Audley with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has below 80 years left, under the current statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Audley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Audley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake was the the leasehold proprietor of a 2 bedroom apartment in Audley on the market with a lease of a little over sixty years remaining. Blake on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. T Harris owned a one bedroom flat in Audley in September 2006. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative flats in Audley with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £45 billed monthly. The lease ended on 23 August 2094. Having 68 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Winter we were e-mailed by Mr and Mrs. V Girard , who completed a garden apartment in Audley in September 2002. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Audley with a long lease were worth £280,000. The average ground rent payable was £55 invoiced monthly. The lease concluded on 2 July 2105. Having 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.