When it comes to domestic leasehold property in Radcliffe, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Radcliffe with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When a lease has below eighty years left, under the current legislation the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Radcliffe with in excess of 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced 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 decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Dexter, started to get near to the 80-year mark with the lease on his garden flat in Radcliffe. In buying his home two decades ago, the length of the lease was of minimal concern. Luckily, he recognised he needed to take action soon on Extending the lease. Dexter arranged for a lease extension just in the nick of time in July. Dexter and the landlord who owned the flat above in the end agreed on sum of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £925.
Mr and Mrs. O Garcia was assigned a lease of a studio apartment in Radcliffe in February 2003. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative flats in Radcliffe with 100 year plus lease were worth £166,800. The average ground rent payable was £50 billed annually. The lease termination date was on 25 November 2076. Given that there were 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
Dr H Smith was assigned a lease of a first floor flat in Radcliffe in August 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical properties in Radcliffe with a long lease were in the region of £280,000. The average ground rent payable was £45 collected per annum. The lease lapsed on 23 March 2096. Having 70 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.