There is no doubt about it a leasehold flat or house in Radcliffe on Trent is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Radcliffe on Trent will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Radcliffe on Trent can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Radcliffe on Trent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Kai, came precariously near to the eighty-year threshold with the lease on his leasehold apartment in Radcliffe on Trent. Having bought his property 19 years previously, the unexpired term was of minimal significance. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Kai was able to extend his lease just ahead of time last March. Kai and the landlord ultimately settled on an amount of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £850.
Last Winter we were called by Mr and Mrs. E Hill , who purchased a basement apartment in Radcliffe on Trent in July 2011. The question was if we could approximate the premium would be to prolong the lease by an additional years. Identical properties in Radcliffe on Trent with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 collected every twelve months. The lease ran out on 15 October 2086. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.
In 2014 we were approached by Mr and Mrs. L Stewart who, having owned a recently refurbished flat in Radcliffe on Trent in June 2001. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical homes in Radcliffe on Trent with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed yearly. The lease elapsed on 27 July 2097. Considering the 71 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.