Unfortunately that a Axminster residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Axminster property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Axminster will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your Axminster leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Cameron, came precariously near to the eighty-year mark with the lease on his two bedroom apartment in Axminster. Having purchased his flat 19 years ago, the lease term was of little concern. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Cameron arranged for a lease extension just in the nick of time last January. Cameron and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had fallen lower than eighty years, the figure would have gone up by at least £1,150.
Last Spring we were e-mailed by Ms Bethany Lefèvre , who moved into a first floor apartment in Axminster in February 2007. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative premises in Axminster with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed on 19 May 2083. Considering the 57 years unexpired we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.
Dr F Thompson bought a first floor flat in Axminster in October 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative premises in Axminster with a long lease were valued around £200,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated on 21 August 2103. Given that there were 77 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.