With a long leasehold premises in Axminster, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Axminster with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has fewer than 80 years left, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Axminster with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Bank of Scotland | 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. |
| Coventry Building Society | 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. |
| 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. |
The conveyancers that we work with undertake Axminster 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 lawyer we work with provide it.
In 2014 Jackson, started to get near to the eighty-year mark with the lease on his first floor apartment in Axminster. In buying his property two decades ago, the length of the lease was of no relevance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Jackson extended the lease at the eleventh hour last August. Jackson and the landlord in the end settled on an amount of £5,000 . If the lease had slid lower than eighty years, the premium would have escalated by a minimum £1,000.
Last November we were phoned by Mr and Mrs. J Thomas , who bought a purpose-built flat in Axminster in November 2008. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Axminster with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 billed monthly. The lease finished on 9 October 2078. Given that there were 52 years remaining we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.
Last year we were approach by Mr and Mrs. L Jackson , who was assigned a lease of a first floor flat in Axminster in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Axminster with a long lease were valued about £290,000. The average amount of ground rent was £45 collected monthly. The lease end date was in 2098. Having 72 years unexpired we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.