Unfortunately that a Clerkenwell residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Clerkenwell property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Clerkenwell will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Clerkenwell with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Clerkenwell can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Clerkenwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Charlie, came perilously close to the eighty-year mark with the lease on his purpose- built apartment in Clerkenwell. Having bought his property two decades ago, the unexpired term was of no importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Charlie arranged for a lease extension at the eleventh hour in April. Charlie and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had fallen lower than 80 years, the figure would have increased by a minimum £1,100.
Last month we were called by Mr Nathan François , who completed a purpose-built flat in Clerkenwell in June 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Clerkenwell with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 7 May 2104. Considering the 79 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
An example of a Lease Extension decision for a Clerkenwell residence is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case was in relation to 1 flat. The unexpired term was 66.8 years.