The value of Bradford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is less than 80 years
Leasehold properties in Bradford with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Bradford leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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.
Last October Dylan, started to get close to the 80-year threshold with the lease on his one bedroom flat in Bradford. Having purchased his home 19 years previously, the length of the lease was of no bearing. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Dylan was able to extend his lease just under the wire last May. Dylan and the freeholder ultimately settled on an amount of £6,000 . If the lease had dipped lower than 80 years, the amount would have escalated by a minimum £1,125.
Last year we were phoned by Mr Milo Rose , who completed a purpose-built flat in Bradford in April 2006. The question was if we could estimate the premium could be to prolong the lease by ninety years. Similar residencies in Bradford with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished on 23 January 2095. Having 71 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
Last year we were called by Mrs Kelsey Cox , who took over the lease of a basement apartment in Bradford in February 2009. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Bradford with a long lease were in the region of £230,800. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 17 July 2084. Considering the 60 years outstanding we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.