The re-sale value of a leasehold property in Radcliffe on Trent depends on how many years the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed well before the 80 year mark. Statute enables Radcliffe on Trent qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Radcliffe on Trent with more than one hundred years left 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.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
The lawyers that we work with procure Radcliffe on Trent lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After lengthy correspondence with the freeholder of her purpose-built apartment in Radcliffe on Trent, Lauren commenced the lease extension process as the eighty year deadline was rapidly coming. The transaction was concluded in November 2008. The freeholder’s fees were negotiated to under 500 GBP.
In 2010 we were called by Mrs K White who, having took over the lease of a garden apartment in Radcliffe on Trent in January 2010. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Radcliffe on Trent with 100 year plus lease were worth £275,000. The average ground rent payable was £55 billed per annum. The lease finished in 2101. Having 76 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Winter we were approach by Ms P David , who completed a basement flat in Radcliffe on Trent in August 2005. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparable homes in Radcliffe on Trent with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease expired in 2081. Taking into account 56 years left we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including fees.