The nearer a residential lease in Redland gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Redland will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Redland with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Redland,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Redland valuers.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her first floor apartment in Redland, Rebecca initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work completed in July 2010. The freeholder’s charges were restricted to about 500 pounds.
In 2011 we were e-mailed by Mr and Mrs. J Davis who, having moved into a purpose-built apartment in Redland in February 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Redland with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 billed monthly. The lease ran out in 2083. Taking into account 57 years remaining we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.
In 2013 we were e-mailed by Mr and Mrs. F Robinson who, having acquired a studio flat in Redland in May 2002. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Redland with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 11 August 2094. Having 68 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.