As the the remaining lease term of a Radcliffe residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Radcliffe will qualify for this right; nevertheless a conveyancer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Radcliffe with over one hundred 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Radcliffe,the lease extension solicitors 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 Radcliffe valuers.
Michael was the the leasehold owner of a studio flat in Radcliffe being marketed with a lease of a little over fifty eight years remaining. Michael on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and secured an acceptable resolution informally and readily saleable.
Last Autumn we were contacted by Dr I Wilson , who moved into a studio apartment in Radcliffe in January 2004. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable residencies in Radcliffe with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 collected monthly. The lease elapsed in 2091. Given that there were 65 years outstanding we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Last September we were contacted by Dr Arthur Hall , who took over the lease of a ground floor apartment in Radcliffe in August 1995. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Radcliffe with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended in 2080. Taking into account 54 years left we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus expenses.