Redland leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Leasehold owners in Redland will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Redland with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Redland,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Redland valuers.
After protracted negotiations with the freeholder of her ground floor flat in Redland, Amelia initiated the lease extension process as the eighty year mark was swiftly coming. The legal work was concluded in May 2011. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. B Hill who, having was assigned a lease of a garden apartment in Redland in May 2000. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar properties in Redland with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed on 8 February 2079. Having 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.
In 2013 we were called by Dr U Clark who, having bought a garden apartment in Redland in May 1997. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable properties in Redland with an extended lease were in the region of £220,400. The average ground rent payable was £45 billed per annum. The lease elapsed on 17 April 2090. Considering the 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 plus legals.