Radstock leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Radstock residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Radstock you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Radstock with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Radstock leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold proprietor of a studio apartment in Radstock being sold with a lease of a little over 72 years remaining. Jonathan on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr S Clarke took over the lease of a one bedroom flat in Radstock in July 2004. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar premises in Radstock with a long lease were in the region of £186,000. The average amount of ground rent was £65 collected quarterly. The lease concluded on 20 May 2084. Having 58 years left we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including professional charges.
In 2009 we were called by Mr and Mrs. V Brown who, having bought a first floor flat in Radstock in June 2001. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Radstock with a long lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded on 1 August 2095. Taking into account 69 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.