As the length of the unexpired term of a Redland residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Redland will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Redland with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Redland leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her basement apartment in Redland, Harriet started the lease extension process as the eighty year mark was rapidly approaching. The transaction was concluded in October 2014. The freeholder’s fees were negotiated to under 700 GBP.
Mr and Mrs. L Lefèvre moved into a first floor apartment in Redland in May 2010. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar premises in Redland with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out in 2097. Given that there were 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Mrs Abigail López completed a one bedroom flat in Redland in August 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable residencies in Redland with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 collected annually. The lease concluded in 2077. Given that there were 51 years left we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.