There is no doubt about it a leasehold property in Radcliffe is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Radcliffe will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Radcliffe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Radcliffe valuers.
Following unsuccessful negotiations with the freeholder of her leasehold apartment in Radcliffe, Emily commenced the lease extension process as the eighty year mark was fast coming. The legal work was finalised in October 2014. The landlord’s costs were kept to an absolute minimum.
Mr Omar Simon bought a one bedroom flat in Radcliffe in September 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Radcliffe with an extended lease were in the region of £184,000. The average amount of ground rent was £55 collected every twelve months. The lease elapsed on 6 November 2079. Given that there were 53 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
Last Christmas we were phoned by Dr Ashleigh Thomas , who owned a garden flat in Radcliffe in February 1997. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical homes in Radcliffe with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed annually. The lease elapsed in 2099. Having 73 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.