Chances are that where you own a flat in Clayhall you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
The lawyers that we work with undertake Clayhall 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 lawyer we work with provide it.
Trailing protracted correspondence with the freeholder of her two bedroom apartment in Clayhall, Isabelle initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The legal work completed in April 2013. The freeholder’s charges were restricted to less than 650 GBP.
Last Spring we were called by Dr Jacob Díaz , who was assigned a lease of a studio apartment in Clayhall in July 2001. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar homes in Clayhall with an extended lease were valued around £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired on 1 January 2105. Taking into account 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Clayhall property is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The unexpired term was 65 and 61.