Radford residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Muhammad was the the leasehold proprietor of a studio flat in Radford on the market with a lease of just over sixty years remaining. Muhammad informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were e-mailed by Dr Riley Girard who, having was assigned a lease of a ground floor flat in Radford in March 2007. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Similar premises in Radford with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired on 4 August 2102. Having 76 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Mr Charlie Clark purchased a newly refurbished flat in Radford in June 2001. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Radford with a long lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out in 2082. Having 56 years remaining we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus professional charges.