When it comes to long leasehold premises in Axbridge, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Anyone in Axbridge with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once the lease term has under 80 years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Axbridge with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Axbridge,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Axbridge valuers.
Last October Stanley, started to get close to the 80-year threshold with the lease on his ground floor flat in Axbridge. In buying his home two decades ago, the lease term was of little relevance. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Stanley extended the lease just ahead of time last April. Stanley and the freeholder ultimately settled on sum of £5,000 . If the lease had slipped to less than 80 years, the figure would have increased by at least £900.
Mr and Mrs. C Robinson acquired a one bedroom flat in Axbridge in September 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Axbridge with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 collected yearly. The lease lapsed in 2078. Considering the 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
Dr S David purchased a basement apartment in Axbridge in February 2010. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Identical flats in Axbridge with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 1 May 2098. Taking into account 72 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.