Why you should commence your Bradford lease extension

Why you should commence your Bradford lease extension today:

A Bradford lease depreciates with the years remaining on the lease.

For anyone whose Bradford flat is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold properties in Bradford with more than one hundred years outstanding 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not loan monies with a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Bradford lease extensions?

Engaging our service gives you increased control over the value of your Bradford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Bradford Lease Extension Example Cases:

Aarav, Bradford, West Yorkshire,

Aarav was the the leasehold proprietor of a 2 bedroom flat in Bradford on the market with a lease of fraction over 61 years unexpired. Aarav 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 at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and secured satisfactory deal informally and sell the flat.

Bradford case:

Ms R Brown took over the lease of a ground floor flat in Bradford in November 2012. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable residencies in Bradford with an extended lease were valued around £275,000. The mid-range ground rent payable was £45 billed yearly. The lease finished in 2095. Considering the 69 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.

Bradford case:

Last Winter we were e-mailed by Dr M Alexander , who acquired a studio apartment in Bradford in November 1995. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative residencies in Bradford with an extended lease were worth £216,000. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded on 4 February 2084. Given that there were 58 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.