Bradford residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Bradford with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bradford can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bradford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah owned a high value flat in Bradford being marketed with a lease of just over 72 years left. Elijah on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and secured an acceptable resolution informally and sell the flat.
Ms E Adams owned a studio apartment in Bradford in April 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Bradford with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 collected per annum. The lease expired on 4 August 2090. Having 64 years left we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
Last year we were approach by Mr Oliver Carter , who moved into a newly refurbished flat in Bradford in August 2001. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative properties in Bradford with an extended lease were in the region of £184,000. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2079. Having 53 years outstanding we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.