Radcliffe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Radcliffe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Radcliffe you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Radcliffe flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
Lender | Requirement |
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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. |
Halifax | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
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. |
The conveyancing solicitors that we work with undertake Radcliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Blake owned a conversion apartment in Radcliffe on the market with a lease of a few days over 59 years left. Blake informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Ms N Patel completed a garden apartment in Radcliffe in May 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Radcliffe with an extended lease were in the region of £174,200. The average ground rent payable was £55 collected every twelve months. The lease finished on 5 March 2076. Considering the 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
Dr K Nelson took over the lease of a newly refurbished flat in Radcliffe in February 2002. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable homes in Radcliffe with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2096. Given that there were 71 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.