It’s an underpublicised certainty that a Radcliffe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Radcliffe property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Radcliffe will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Radcliffe with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
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 lawyer we work with provide it.
Ryan owned a 2 bedroom apartment in Radcliffe on the market with a lease of a little over 72 years unexpired. Ryan on an informal basis 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 subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and secured satisfactory deal informally and sell the property.
Last April we were approach by Mr and Mrs. M Edwards , who was assigned a lease of a basement flat in Radcliffe in August 1997. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical premises in Radcliffe with an extended lease were in the region of £260,200. The average amount of ground rent was £65 invoiced monthly. The lease end date was on 19 June 2092. Taking into account 66 years left we calculated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including costs.
Mr and Mrs. T Rogers took over the lease of a first floor apartment in Radcliffe in July 2001. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable homes in Radcliffe with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected yearly. The lease terminated in 2081. Taking into account 55 years as a residual term we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.