The value of Radcliffe on Trent leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than 80 years
Leasehold properties in Radcliffe on Trent with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Radcliffe on Trent can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 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.
Last Autumn Luke, came seriously close to the 80-year mark with the lease on his ground floor apartment in Radcliffe on Trent. Having bought his flat two decades ago, the length of the lease was of minimal importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Luke extended the lease just under the wire in April. Luke and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,150.
In 2011 we were approached by Mr and Mrs. K Simon who, having was assigned a lease of a garden apartment in Radcliffe on Trent in January 2012. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Radcliffe on Trent with 100 year plus lease were worth £168,800. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed in 2081. Given that there were 55 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.
In 2010 we were phoned by Mr T Rodríguez who, having bought a garden apartment in Radcliffe on Trent in January 2008. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Identical homes in Radcliffe on Trent with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease end date was on 16 June 2092. Having 66 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.