Axbridge leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Axbridge will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Axbridge can be a difficult process. We recommend you obtain guidance from a lawyer 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 a wealth of experience dealing with Axbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John was the the leasehold owner of a studio flat in Axbridge being marketed with a lease of just over 59 years left. John on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John procured expert advice and secured satisfactory deal informally and readily saleable.
Dr A Gray completed a purpose-built apartment in Axbridge in April 2002. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Axbridge with a long lease were valued around £248,000. The average amount of ground rent was £65 collected monthly. The lease concluded on 7 January 2088. Taking into account 63 years left we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus professional charges.
In 2011 we were e-mailed by Mr and Mrs. T Petit who, having owned a garden flat in Axbridge in May 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Axbridge with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced per annum. The lease expiry date was in 2078. Taking into account 53 years unexpired we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.