Bradford leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher premium will be payable. Flat owners in Bradford will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Bradford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ollie, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Bradford. Having bought his home two decades ago, the lease term was of minimal significance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Ollie was able to extend his lease just under the wire in June. Ollie and the landlord subsequently agreed on a premium of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £1,125.
In 2011 we were phoned by Mr and Mrs. Y Patel who, having bought a garden apartment in Bradford in March 2006. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Bradford with a long lease were in the region of £179,200. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2077. Given that there were 51 years outstanding we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.
Last Spring we were approach by Ms T Adams , who owned a one bedroom flat in Bradford in May 2003. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Bradford with a long lease were valued around £285,000. The average ground rent payable was £45 collected monthly. The lease termination date was in 2098. Taking into account 72 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.