When it comes to residential leasehold property in Radcliffe, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Residents in Radcliffe with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has below eighty years outstanding, under the relevant legislation the landlord can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Radcliffe with in excess of one hundred years remaining 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Radcliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Blake, started to get close to the 80-year mark with the lease on his leasehold apartment in Radcliffe. Having purchased his flat 18 years ago, the unexpired term was of no concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Blake arranged for a lease extension just under the wire last March. Blake and the freeholder ultimately agreed on an amount of £5,500 . If he had missed the deadline, the price would have increased by at least £1,125.
Dr O González purchased a first floor apartment in Radcliffe in August 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Radcliffe with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2106. Given that there were 80 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last June we were e-mailed by Dr Freddie Martin , who took over the lease of a studio flat in Radcliffe in November 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical residencies in Radcliffe with a long lease were in the region of £275,000. The average amount of ground rent was £45 collected every twelve months. The lease ended on 18 February 2095. Having 69 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.