The re-sale value of a leasehold property in Radlett depends on how many years the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the 80 year cut off point. Current legislation enables Radlett qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a freeholder in Radlett,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Radlett valuers.
Jayden was the the leasehold owner of a conversion apartment in Radlett on the market with a lease of a few days over 59 years left. Jayden on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last August we were e-mailed by Mr B Ramírez , who owned a garden apartment in Radlett in September 2004. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Radlett with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 billed yearly. The lease came to a finish in 2080. Having 54 years remaining we calculated the premium to the landlord for the lease extension to be within £35,200 and £40,600 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Radlett property is 42 Churchill Road in March 2013. The Tribunal determined that the price payable in respect of the acquisition of the freehold of the property as required under the terms of the Court Order dated 21 December 2012, is£26,958 This case was in relation to 1 flat.