Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Radlett. Clearly, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Radlett have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give due attention before delaying your Radlett lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 lawyers that we work with handle Radlett 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.
Subsequent to lengthy correspondence with the freeholder of her garden apartment in Radlett, Chantelle started the lease extension process as the 80 year mark was quickly approaching. The lease extension was finalised in August 2010. The landlord’s costs were kept to an absolute minimum.
Dr Lily Mason acquired a one bedroom apartment in Radlett in June 2009. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Radlett with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 invoiced per annum. The lease expired in 2078. Considering the 52 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus professional charges.
An example of a Freehold Enfranchisement case 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.