When it comes to long leasehold property in Redland, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Anyone in Redland with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under eighty years left, under the relevant Act the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Redland,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 Redland valuers.
Trailing unsuccessful discussions with the landlord of her garden flat in Redland, Emily commenced the lease extension process as the eighty year deadline was rapidly advancing. The lease extension was finalised in June 2014. The landlord’s charges were restricted to about 700 GBP.
Mr T Adams moved into a studio apartment in Redland in January 1995. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar residencies in Redland with a long lease were worth £227,800. The average ground rent payable was £45 collected per annum. The lease terminated in 2089. Having 65 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
Mr G Wilson was assigned a lease of a recently refurbished flat in Redland in March 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Redland with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2100. Given that there were 76 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.