With a long leasehold property in Bradford, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Bradford with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than 80 years left, under the current statute the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Bradford with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Bradford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bradford valuers.
In the wake of 6 months of lengthy discussions with the freeholder of her two bedroom flat in Bradford, Jennifer started the lease extension process as the eighty year mark was quickly coming. The lease extension was finalised in May 2015. The landlord’s charges were kept to an absolute minimum.
Last Winter we were phoned by Mr U Cooper , who purchased a ground floor apartment in Bradford in October 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Bradford with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease expired on 22 February 2086. Taking into account 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.
Last Spring we were contacted by Dr H Mason , who purchased a one bedroom flat in Bradford in April 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Bradford with an extended lease were worth £171,800. The average amount of ground rent was £55 collected monthly. The lease concluded on 19 May 2075. Having 50 years unexpired we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.