It’s an underpublicised certainty that a Redfield residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted 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 should start thinking about 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 below 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 conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Redfield can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Redfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her studio flat in Redfield, Isobel commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was concluded in May 2010. The landlord’s charges were negotiated to a tad over 600 pounds.
Last month we were e-mailed by Mr I Martinez , who acquired a recently refurbished apartment in Redfield in July 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Redfield with an extended lease were in the region of £242,600. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 15 June 2093. Taking into account 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.
Last Autumn we were called by Mr Ben Sánchez , who acquired a basement flat in Redfield in May 1999. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical residencies in Redfield with an extended lease were worth £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease expired in 2104. Given that there were 78 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.