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 market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls below 80 years, you will end up paying half 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 additional value that a lease extension will add the property The majority of leasehold owners in Bradford will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bradford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bradford valuers.
Evan owned a high value flat in Bradford being sold with a lease of fraction over 72 years outstanding. Evan on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Last year we were contacted by Ms P Gray , who completed a first floor apartment in Bradford in February 1998. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in Bradford with an extended lease were valued about £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished in 2096. Having 70 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Last year we were contacted by Ms Bethan Martinez , who took over the lease of a first floor apartment in Bradford in March 2001. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Bradford with a long lease were in the region of £218,400. The average ground rent payable was £60 billed quarterly. The lease expired on 18 May 2085. Considering the 59 years outstanding we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including professional charges.