The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bradford On Avon can extend the lease for a further ninety years under statute. Do think carefully before delaying your Bradford On Avon lease extension. Postponing that expense today simply increases the price you will ultimately have to pay to extend the lease.
Leasehold properties in Bradford On Avon with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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; |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Bradford On Avon leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a 2 bedroom flat in Bradford On Avon on the market with a lease of fraction over sixty years outstanding. Oliver on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2010 we were contacted by Mr and Mrs. K Phillips who, having completed a studio flat in Bradford On Avon in May 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Bradford On Avon with an extended lease were worth £223,400. The mid-range ground rent payable was £60 billed yearly. The lease finished in 2084. Given that there were 59 years remaining we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including fees.
Last Autumn we were called by Ms U Martinez , who moved into a one bedroom flat in Bradford On Avon in April 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Bradford On Avon with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished on 3 November 2104. Given that there were 79 years outstanding we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.