As the length of the unexpired term of a Radcliffe residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Radcliffe will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. 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. |
| 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 |
| 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 lawyers that we work with procure 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.
Off the back of unsuccessful discussions with the freeholder of her studio flat in Radcliffe, Zoe started the lease extension process as the 80 year deadline was rapidly advancing. The transaction was finalised in October 2013. The freeholder’s costs were kept to an absolute minimum.
Ms Harriet Wood bought a garden flat in Radcliffe in May 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Radcliffe with a long lease were valued about £290,000. The average ground rent payable was £45 collected per annum. The lease expired in 2099. Given that there were 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Ms Y Sánchez completed a garden flat in Radcliffe in September 2005. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical homes in Radcliffe with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £60 collected monthly. The lease came to a finish on 10 October 2088. Having 62 years unexpired we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.