There is no doubt about it a leasehold flat or house in Bradford is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Bradford will qualify for this right; that being said a conveyancer can advise if you qualify to extend your lease. In certain 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 more than one hundred years unexpired on the lease are often referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bradford can be a difficult process. We recommend you get professional help from a conveyancer 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 procuring Bradford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a high value apartment in Bradford being marketed with a lease of just over 61 years unexpired. Teddy informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Ms Jessica Davies moved into a first floor flat in Bradford in June 1997. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Bradford with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed in 2104. Taking into account 78 years remaining we approximated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 not including expenses.
In 2009 we were approached by Mrs Alexandra Adams who, having took over the lease of a first floor flat in Bradford in February 1997. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable residencies in Bradford with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £65 collected every twelve months. The lease concluded on 3 February 2094. Having 68 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.