When it comes to residential leasehold property in Radstock, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Radstock with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years outstanding, under the current legislation the freeholder can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Radstock,the lease extension experts 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.
Off the back of unsuccessful correspondence with the landlord of her one bedroom apartment in Radstock, Zoe initiated the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension was finalised in July 2009. The landlord’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Dr U Bonnet who, having moved into a one bedroom apartment in Radstock in March 2003. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Radstock with an extended lease were worth £176,200. The average ground rent payable was £65 collected every twelve months. The lease end date was on 13 October 2081. Taking into account 56 years left we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including costs.
Mr and Mrs. G Murphy was assigned a lease of a studio apartment in Radstock in September 2009. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical properties in Radstock with an extended lease were in the region of £237,600. The mid-range ground rent payable was £45 collected quarterly. The lease expiry date was on 23 July 2092. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of legals.