Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Radcliffe. Clearly, the term of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Radcliffe have the legal entitlement to extend the lease for a further 90 years under legislation. Please give due attention before putting off your Radcliffe lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Using our service will provide you better control over the value of your Radcliffe leasehold, as your property will be more valuable and saleable in relation to the 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.
Trailing unsuccessful negotiations with the landlord of her studio apartment in Radcliffe, Aimee started the lease extension process as the 80 year threshold was rapidly coming. The transaction was finalised in April 2015. The freeholder’s charges were restricted to under 700 pounds.
Last July we were called by Dr Victoria Parker , who bought a one bedroom flat in Radcliffe in November 1995. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable properties in Radcliffe with a long lease were worth £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated in 2079. Given that there were 54 years left we estimated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of fees.
In 2014 we were contacted by Mr and Mrs. D Davis who, having took over the lease of a purpose-built flat in Radcliffe in April 2000. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Radcliffe with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced annually. The lease came to a finish in 2099. Having 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.