Radcliffe leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Radcliffe will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Radcliffe with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 conveyancing solicitor we work with provide it.
Theo was the the leasehold proprietor of a 2 bedroom apartment in Radcliffe being marketed with a lease of a few days over sixty years outstanding. Theo informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
Last Winter we were contacted by Ms Erin Wright , who completed a studio apartment in Radcliffe in October 2002. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparative premises in Radcliffe with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 billed quarterly. The lease lapsed in 2097. Having 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Mr and Mrs. L Richardson completed a recently refurbished apartment in Radcliffe in November 1999. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Radcliffe with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out on 17 June 2086. Taking into account 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.