The market value of Radcliffe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold premises in Radcliffe with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Radcliffe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Radcliffe valuers.
Nathaniel was the the leasehold owner of a high value flat in Radcliffe on the market with a lease of a little over 59 years unexpired. Nathaniel informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. H Mason bought a basement flat in Radcliffe in January 2003. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable homes in Radcliffe with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed on 24 July 2083. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.
In 2013 we were e-mailed by Mr and Mrs. P Brown who, having was assigned a lease of a one bedroom flat in Radcliffe in February 2002. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable flats in Radcliffe with a long lease were worth £200,000. The average ground rent payable was £50 billed annually. The lease terminated on 7 October 2103. Having 77 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.