It’s an underpublicised truth that a Bradford residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bradford property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Bradford will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Bradford with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Bradford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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.
Two years ago Tyler, came precariously close to the 80-year mark with the lease on his studio flat in Bradford. In buying his flat two decades ago, the length of the lease was of little concern. Luckily, he realised he needed to take action soon on Extending the lease. Tyler extended the lease just ahead of time in July. Tyler and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If the lease had dipped lower than eighty years, the sum would have escalated by a minimum £1,100.
Last Spring we were approach by Mr and Mrs. S Evans , who was assigned a lease of a garden apartment in Bradford in July 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Bradford with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 collected quarterly. The lease finished on 26 October 2099. Taking into account 73 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Dr Matthew Young took over the lease of a ground floor apartment in Bradford in February 2000. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable homes in Bradford with an extended lease were valued about £235,600. The average amount of ground rent was £60 billed annually. The lease terminated in 2088. Given that there were 62 years remaining we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.