The market value of Bradford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Bradford with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a freeholder in Bradford,the lease extension experts 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.
Following lengthy discussions with the freeholder of her leasehold flat in Bradford, Alice initiated the lease extension process as the 80 year mark was fast advancing. The lease extension was concluded in May 2007. The landlord’s fees were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. J Bailey who, having acquired a one bedroom flat in Bradford in October 2011. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Similar homes in Bradford with an extended lease were worth £252,800. The average ground rent payable was £65 invoiced quarterly. The lease end date was in 2091. Given that there were 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.
In 2010 we were contacted by Mr and Mrs. D Brown who, having purchased a one bedroom apartment in Bradford in April 2007. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Bradford with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2080. Given that there were 54 years left we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus costs.