The only way is down when it comes to Bradford lease terms. Bradford flats that have a remaining term shorter than 80 years will de-escalate in value even faster, and the cost of extending your lease will increase.
Leasehold residencies in Bradford with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Bradford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bradford valuers.
Aaron was the the leasehold proprietor of a conversion flat in Bradford being marketed with a lease of a little over sixty years left. Aaron on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Autumn we were contacted by Dr Toby Bernard , who bought a basement flat in Bradford in September 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Bradford with 100 year plus lease were valued around £198,800. The average ground rent payable was £55 billed monthly. The lease ended in 2081. Considering the 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of legals.
Last year we were contacted by Mr and Mrs. P Baker , who bought a purpose-built flat in Bradford in November 2008. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Bradford with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease lapsed on 25 April 2102. Considering the 76 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.