For anyone whose Redland home is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold properties in Redland with in excess of one hundred 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Redland,the lease extension solicitors that we work with will always be happy 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.
Subsequent to unsuccessful correspondence with the freeholder of her basement apartment in Redland, Jasmine initiated the lease extension process as the eighty year threshold was quickly advancing. The legal work was finalised in February 2014. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mrs Bethan Hernández who, having moved into a recently refurbished flat in Redland in September 2001. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in Redland with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 billed quarterly. The lease concluded on 15 July 2100. Having 75 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Ms Samantha Parker purchased a basement apartment in Redland in July 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Redland with 100 year plus lease were worth £168,800. The mid-range ground rent payable was £60 billed yearly. The lease ran out on 11 July 2080. Given that there were 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.