As the the remaining lease term of a Bradford domestic lease decreases so does its value and therefore the value of your property. If the lease has, over 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Bradford will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Bradford leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her one bedroom apartment in Bradford, Harriet commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction completed in July 2010. The landlord’s charges were negotiated to a tad over 600 pounds.
Last Summer we were called by Mr and Mrs. T Ricardo , who acquired a recently refurbished flat in Bradford in August 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative homes in Bradford with an extended lease were in the region of £265,200. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish on 28 May 2091. Considering the 66 years remaining we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of expenses.
In 2013 we were e-mailed by Dr A Bertrand who, having purchased a purpose-built flat in Bradford in February 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar premises in Bradford with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 invoiced annually. The lease ended in 2080. Considering the 55 years outstanding we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including expenses.