When it comes to residential leasehold property in Radcliffe, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Radcliffe with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under 80 years left, under the relevant Act the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Radcliffe with over 100 years left 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 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Radcliffe,the lease extension lawyers that we work with will always be willing 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 lengthy discussions with the landlord of her basement flat in Radcliffe, Yasmin initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The legal work was finalised in April 2005. The freeholder’s fees were negotiated to under 700 GBP.
Last September we were contacted by Dr V Moore , who completed a newly refurbished apartment in Radcliffe in April 2012. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Radcliffe with a long lease were in the region of £218,400. The mid-range amount of ground rent was £60 billed monthly. The lease came to a finish in 2083. Having 59 years left we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including expenses.
Dr R Lewis acquired a one bedroom apartment in Radcliffe in November 2009. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Radcliffe with an extended lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded on 10 January 2103. Taking into account 79 years outstanding we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 plus professional charges.