Axbridge leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Axbridge will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence 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. |
| 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. |
| 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. |
| 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 get guidance 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 a wealth of experience 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.
In 2014 Teddy, started to get close to the 80-year mark with the lease on his ground floor apartment in Axbridge. In buying his home 19 years previously, the lease term was of no concern. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Teddy extended the lease at the eleventh hour in July. Teddy and the landlord who owned the flat above in the end settled on an amount of £6,000 . If the lease had descended lower than 80 years, the amount would have become more exhorbitant by at least £975.
Last month we were approach by Dr Jacob Bailey , who moved into a one bedroom flat in Axbridge in August 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Axbridge with an extended lease were worth £208,600. The average ground rent payable was £60 invoiced per annum. The lease lapsed in 2082. Taking into account 57 years outstanding we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
In 2014 we were called by Mr W Gunderson who, having moved into a one bedroom flat in Axbridge in June 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Similar residencies in Axbridge with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 collected monthly. The lease end date was on 12 January 2102. Taking into account 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.