Bradford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Bradford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bradford you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Engaging our service gives you increased control over the value of your Bradford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kyle, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Bradford. Having purchased his home two decades ago, the length of the lease was of minimal concern. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Kyle was able to extend his lease at the eleventh hour last July. Kyle and the freeholder subsequently agreed on the final figure of £5,000 . If the lease had descended to less than eighty years, the figure would have gone up by at least £950.
Mr and Mrs. D Adams took over the lease of a purpose-built flat in Bradford in May 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar properties in Bradford with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 25 August 2080. Given that there were 54 years left we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.
Ms G Sánchez bought a first floor flat in Bradford in June 1998. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Similar homes in Bradford with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish in 2100. Considering the 74 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.