Radcliffe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Radcliffe residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Radcliffe you would be well advised to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Radcliffe flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with undertake 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.
Off the back of unsuccessful discussions with the landlord of her leasehold flat in Radcliffe, Robyn initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension completed in January 2009. The freeholder’s fees were restricted to below 700 pounds.
In 2011 we were contacted by Dr P Moreau who, having completed a basement flat in Radcliffe in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Radcliffe with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease ran out in 2081. Having 55 years left we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
Mr F Patel moved into a purpose-built flat in Radcliffe in October 2010. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Radcliffe with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £50 collected yearly. The lease termination date was on 19 September 2101. Taking into account 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.