As the the remaining lease term of a Clayhall residential lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Clayhall will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Clayhall with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
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 conveyancer we work with provide it.
Following protracted negotiations with the freeholder of her garden flat in Clayhall, Samantha started the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work completed in March 2006. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Dr D López who, having acquired a one bedroom flat in Clayhall in June 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable properties in Clayhall with an extended lease were in the region of £252,800. The average ground rent payable was £65 collected per annum. The lease expired on 2 February 2090. Having 65 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Clayhall premises 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.