Unfortunately that a Redland residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Redland property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Redland will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Redland leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Redland, Lauren initiated the lease extension process as the 80 year deadline was swiftly advancing. The transaction was finalised in August 2005. The landlord’s fees were negotiated to less than 450 GBP.
Last year we were phoned by Mr and Mrs. N Moreau , who moved into a one bedroom apartment in Redland in February 2003. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Redland with a long lease were worth £264,000. The average amount of ground rent was £60 billed every twelve months. The lease came to a finish on 9 September 2078. Given that there were 53 years left we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus costs.
In 2011 we were phoned by Mr and Mrs. F Nelson who, having bought a newly refurbished flat in Redland in February 2000. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar premises in Redland with an extended lease were worth £225,400. The average ground rent payable was £45 billed annually. The lease lapsed in 2089. Having 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of legals.