When it comes to residential leasehold property in Bradford, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Bradford with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
|Accord Mortgages||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.|
|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.|
|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.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Irrespective of whether you are a tenant or a freeholder in Bradford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bradford valuers.
Jackson owned a 2 bedroom apartment in Bradford being sold with a lease of a little over 72 years left. Jackson informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2009 we were phoned by Mrs Hannah Morris who, having purchased a studio flat in Bradford in November 2006. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar homes in Bradford with an extended lease were in the region of £260,200. The average ground rent payable was £65 invoiced per annum. The lease expired in 2086. Considering the 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 plus professional charges.
Last year we were approach by Mr and Mrs. S Collins , who bought a first floor apartment in Bradford in June 2006. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar homes in Bradford with 100 year plus lease were worth £198,800. The average ground rent payable was £55 billed annually. The lease came to a finish on 17 March 2075. Taking into account 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.