The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Axminster can extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Axminster lease extension. Shelving the costs now simply increases the price you will ultimately be required to pay for a lease extension.
Leasehold residencies in Axminster with more than 100 years remaining 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Axminster,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Axminster valuers.
Last Autumn Owen, came precariously close to the eighty-year mark with the lease on his basement apartment in Axminster. Having purchased his home twenty years ago, the length of the lease was of little relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Owen was able to extend his lease just under the wire last June. Owen and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,075.
Last Summer we were e-mailed by Mr and Mrs. C Taylor , who acquired a first floor flat in Axminster in May 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar flats in Axminster with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease concluded on 21 November 2096. Taking into account 71 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Ms Isobel Collins completed a purpose-built flat in Axminster in September 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Axminster with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease end date was on 6 August 2085. Given that there were 60 years remaining we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 not including legals.