Clapton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Clapton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Clapton you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Clapton flat owner with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Clapton with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 landlord in Clapton,the lease extension lawyers 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 Clapton valuers.
Stanley owned a conversion apartment in Clapton being sold with a lease of just over sixty years remaining. Stanley informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
In 2009 we were approached by Mrs O Cooper who, having owned a one bedroom flat in Clapton in September 2010. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Clapton with a long lease were valued about £265,000. The average ground rent payable was £50 billed quarterly. The lease concluded on 20 February 2097. Having 73 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement decision for a Clapton flat is 104 Nightingale Road in May 2009. The Tribunal's Decision is that the premium torbe paid for the enfranchisement in this case is £112,174 This case related to 10 flats. The unexpired residue of the current lease was 71.25 years.