Radcliffe leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Radcliffe will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold properties 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 is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancing solicitor we work with provide it.
Matthew owned a conversion flat in Radcliffe being sold with a lease of a few days over sixty years left. Matthew on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Winter we were called by Mr Muhammad David , who completed a recently refurbished apartment in Radcliffe in November 1997. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Radcliffe with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish in 2102. Having 76 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Mr and Mrs. M Parker purchased a one bedroom flat in Radcliffe in November 2004. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Radcliffe with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced annually. The lease ran out in 2091. Taking into account 65 years left we estimated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of expenses.