Chances are that if you own a flat in Axbridge you actually own a long leasehold interest over your property
Leasehold premises in Axbridge with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Axbridge 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.
Subsequent to protracted discussions with the landlord of her garden apartment in Axbridge, Amelia commenced the lease extension process just as the lease was nearing the all-important eighty-year mark. The transaction was concluded in January 2009. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Mr G Nelson who, having owned a one bedroom flat in Axbridge in September 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Axbridge with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 billed per annum. The lease ended on 15 April 2080. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including fees.
In 2014 we were called by Mr Milo Reed who, having purchased a recently refurbished flat in Axbridge in November 2002. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Axbridge with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 billed yearly. The lease ended on 3 July 2100. Considering the 74 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.