There is no doubt about it a leasehold flat or house in Axbridge is a wasting asset as a result of the shortening lease. Where the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Axbridge will qualify for this right; however a conveyancer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Santander |
Engaging our service will provide you increased control over the value of your Axbridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad owned a high value apartment in Axbridge on the market with a lease of just over 72 years left. Muhammad on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord 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 increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Christmas we were approach by Dr N Mason , who was assigned a lease of a ground floor apartment in Axbridge in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Axbridge with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out in 2097. Given that there were 71 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Mr and Mrs. V Clarke took over the lease of a basement apartment in Axbridge in October 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Axbridge with an extended lease were worth £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease terminated on 19 May 2086. Having 60 years left we approximated the premium to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of expenses.