When it comes to long leasehold property in Radford, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Radford with a lease approaching 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the current statute the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Radford 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.
Last year Felix, started to get close to the eighty-year mark with the lease on his studio apartment in Radford. In buying his flat two decades ago, the lease term was of little bearing. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Felix extended the lease at the eleventh hour last September. Felix and the freeholder subsequently settled on sum of £5,500 . If the lease had slipped below eighty years, the price would have become more costly by at least £1,025.
Mr and Mrs. Y Reed was assigned a lease of a studio flat in Radford in October 2011. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative flats in Radford with an extended lease were in the region of £261,600. The average amount of ground rent was £60 billed yearly. The lease concluded on 3 July 2077. Given that there were 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of legals.
Dr D Girard took over the lease of a ground floor flat in Radford in October 2008. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Radford with a long lease were worth £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease termination date was on 10 January 2088. Taking into account 63 years left we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of legals.