Radcliffe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Radcliffe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Radcliffe you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Radcliffe 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Radcliffe leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Logan owned a studio flat in Radcliffe on the market with a lease of fraction over 61 years remaining. Logan informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
In 2014 we were contacted by Mr U Ricardo who, having took over the lease of a newly refurbished apartment in Radcliffe in February 2008. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar residencies in Radcliffe with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease end date was on 12 May 2077. Considering the 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Mrs Hollie Flores acquired a one bedroom apartment in Radcliffe in April 2008. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable residencies in Radcliffe with a long lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease terminated in 2097. Having 72 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.