Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Radcliffe on Trent. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Radcliffe on Trent have the right to extend the lease for a further 90 years in accordance with legislation. You should give careful attention before delaying your Radcliffe on Trent lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Radcliffe on Trent with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Radcliffe on Trent,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Radcliffe on Trent valuers.
Last Autumn Eliot, started to get close to the eighty-year mark with the lease on his two bedroom flat in Radcliffe on Trent. Having bought his property 19 years previously, the unexpired term was of little bearing. As luck would have it, he realised he needed to take steps soon on a lease extension. Eliot arranged for a lease extension at the eleventh hour in March. Eliot and the freeholder ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £900.
Mr Y Young moved into a ground floor flat in Radcliffe on Trent in August 1995. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical flats in Radcliffe on Trent with an extended lease were in the region of £237,600. The average amount of ground rent was £45 billed annually. The lease expired in 2093. Taking into account 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.
In 2011 we were approached by Dr U Hernández who, having bought a first floor flat in Radcliffe on Trent in July 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative homes in Radcliffe on Trent with a long lease were worth £280,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2104. Having 78 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.