For those whose Radcliffe flat is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Radcliffe can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Radcliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen owned a conversion apartment in Radcliffe being sold with a lease of a few days over 61 years remaining. Owen informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Christmas we were e-mailed by Dr Harvey Lambert , who was assigned a lease of a one bedroom flat in Radcliffe in March 1999. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparative homes in Radcliffe with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 20 May 2095. Given that there were 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Last February we were approach by Ms P Rodríguez , who acquired a basement apartment in Radcliffe in August 2004. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Radcliffe with a long lease were in the region of £218,400. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2084. Taking into account 59 years unexpired we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of fees.