The closer a residential lease in Bradford nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Bradford will qualify for this right; however a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Bradford with over one hundred years unexpired 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Bradford can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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.
During the course of the last few months Jasper, came seriously close to the eighty-year mark with the lease on his garden apartment in Bradford. Having purchased his home two decades ago, the unexpired term was of no interest. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Jasper extended the lease just under the wire last September. Jasper and the landlord in the end agreed on sum of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,050.
Last Spring we were approach by Mr and Mrs. T James , who moved into a ground floor apartment in Bradford in March 2012. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable residencies in Bradford with an extended lease were in the region of £196,400. The mid-range ground rent payable was £55 invoiced monthly. The lease finished on 18 September 2079. Given that there were 54 years remaining we estimated the compensation to the landlord to extend the lease to be between £35,200 and £40,600 plus professional charges.
In 2011 we were e-mailed by Mr and Mrs. E Lewis who, having was assigned a lease of a newly refurbished flat in Bradford in May 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Bradford with 100 year plus lease were worth £295,000. The average ground rent payable was £45 collected monthly. The lease expired in 2099. Given that there were 74 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.