Unfortunately that a Redfield residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Redfield property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Redfield will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Redfield with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Redfield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot was the the leasehold proprietor of a 2 bedroom apartment in Redfield being sold with a lease of a little over 59 years outstanding. Eliot on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr Ben Sharif bought a basement flat in Redfield in August 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Redfield with a long lease were worth £200,800. The average ground rent payable was £65 collected per annum. The lease ended on 26 February 2086. Given that there were 60 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
Last May we were approach by Mr and Mrs. D White , who owned a one bedroom flat in Redfield in May 1995. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar homes in Redfield with an extended lease were in the region of £255,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 13 June 2097. Taking into account 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.