Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Axbridge. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Axbridge have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give due attention before putting off your Axbridge lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Axbridge can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 procuring Axbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Theo, came very near to the eighty-year threshold with the lease on his basement flat in Axbridge. In buying his flat 18 years previously, the unexpired term was of no bearing. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Theo was able to extend his lease at the eleventh hour last January. Theo and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had dipped lower than 80 years, the figure would have escalated by a minimum £1,050.
Dr Kirsty Mercier bought a one bedroom apartment in Axbridge in October 2000. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical premises in Axbridge with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was in 2101. Given that there were 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
Last August we were contacted by Mr and Mrs. J Allen , who owned a ground floor apartment in Axbridge in January 2003. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar residencies in Axbridge with a long lease were valued around £252,800. The average ground rent payable was £65 billed quarterly. The lease lapsed on 15 January 2090. Considering the 65 years left we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of fees.