When it comes to long leasehold property in Radcliffe, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Anyone in Radcliffe with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the current Act the freeholder can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you better control over the value of your Radcliffe leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dexter owned a conversion apartment in Radcliffe being sold with a lease of a little over sixty years left. Dexter informally contacted his landlord being a well known local-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 on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. W Anderson who, having took over the lease of a one bedroom apartment in Radcliffe in September 1996. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Radcliffe with 100 year plus lease were valued around £201,200. The average ground rent payable was £55 billed quarterly. The lease ran out on 5 September 2081. Considering the 56 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus costs.
In 2013 we were called by Mr and Mrs. O David who, having completed a first floor apartment in Radcliffe in June 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Radcliffe with 100 year plus lease were valued around £300,000. The average ground rent payable was £50 billed quarterly. The lease ended on 18 April 2101. Considering the 76 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.