When it comes to domestic leasehold premises in Radford, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Radford with a lease approaching 81 years left should seriously think of extending it sooner than later. When the lease term has under 80 years remaining, under the current legislation the freeholder can calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Radford can be a difficult process. We recommend you get 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 Radford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her studio apartment in Radford, Amber commenced the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was finalised in November 2007. The landlord’s costs were negotiated to approximately 450 pounds.
Dr U Taylor bought a basement flat in Radford in April 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Radford with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 collected every twelve months. The lease expiry date was in 2088. Considering the 62 years left we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of expenses.
In 2014 we were phoned by Mrs T Edwards who, having purchased a ground floor flat in Radford in August 2011. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar residencies in Radford with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished on 16 February 2099. Given that there were 73 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.