The re-sale value of a leasehold property in Axminster depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year mark. Leasehold Reform legislation enables Axminster qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Axminster with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
Engaging our service will provide you better control over the value of your Axminster leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her studio flat in Axminster, Chantelle commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was finalised in August 2008. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. V Hall was assigned a lease of a one bedroom apartment in Axminster in January 2006. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Identical premises in Axminster with a long lease were in the region of £280,000. The average amount of ground rent was £45 billed annually. The lease came to a finish in 2095. Taking into account 69 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2012 we were contacted by Mr and Mrs. B Brooks who, having took over the lease of a basement flat in Axminster in October 2011. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar flats in Axminster with an extended lease were valued about £216,000. The average amount of ground rent was £60 billed quarterly. The lease terminated on 22 January 2084. Considering the 58 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.