When it comes to long leasehold premises in Radstock, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years remaining. Leasehold owners in Radstock with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Radstock,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Radstock valuers.
Daniel was the the leasehold proprietor of a 2 bedroom flat in Radstock on the market with a lease of fraction over 59 years unexpired. Daniel on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. C Moreau was assigned a lease of a basement apartment in Radstock in September 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Radstock with a long lease were worth £218,000. The average ground rent payable was £45 billed monthly. The lease ran out on 24 April 2089. Having 63 years remaining we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.
In 2009 we were phoned by Mr and Mrs. N Brooks who, having completed a basement flat in Radstock in November 1995. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative properties in Radstock with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected annually. The lease expiry date was on 1 March 2100. Having 74 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.