The re-sale value of a leasehold property in Radcliffe is impacted by how long the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year cut off point. Current legislation enables Radcliffe qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Radcliffe with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Skipton Building Society |
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 conveyancer we work with provide it.
In 2014 George, started to get near to the 80-year threshold with the lease on his two bedroom flat in Radcliffe. Having purchased his home 19 years ago, the lease term was of little concern. by good luck, he recognised he needed to take steps soon on Extending the lease. George extended the lease just in the nick of time in March. George and the landlord eventually settled on a premium of £5,500 . If the lease had dropped to less than 80 years, the premium would have increased by at least £1,125.
In 2012 we were approached by Ms P Wood who, having completed a purpose-built apartment in Radcliffe in November 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Radcliffe with an extended lease were worth £280,000. The average ground rent payable was £45 collected every twelve months. The lease concluded in 2096. Taking into account 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2009 we were called by Mr and Mrs. S Laurent who, having was assigned a lease of a recently refurbished apartment in Radcliffe in April 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Radcliffe with a long lease were worth £223,400. The average amount of ground rent was £60 invoiced yearly. The lease terminated in 2085. Having 59 years unexpired we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of professional charges.