The only way is down when it comes to Axminster lease terms. Axminster properties that have a residual term shorter than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Axminster with in excess of 100 years remaining 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Axminster leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Gabriel, started to get close to the eighty-year mark with the lease on his basement flat in Axminster. Having bought his flat 19 years ago, the length of the lease was of minimal importance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Gabriel arranged for a lease extension at the eleventh hour last September. Gabriel and the landlord subsequently settled on the final figure of £6,000 . If the lease had dipped to less than 80 years, the figure would have increased by a minimum £1,125.
Last Summer we were approach by Mr and Mrs. N Bertrand , who moved into a purpose-built flat in Axminster in July 2007. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable residencies in Axminster with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated in 2090. Given that there were 64 years remaining we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus legals.
In 2012 we were contacted by Mr and Mrs. V Reed who, having acquired a ground floor apartment in Axminster in May 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Axminster with a long lease were worth £189,000. The average ground rent payable was £55 collected yearly. The lease finished in 2079. Taking into account 53 years remaining we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.