The value of Clifton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold properties in Clifton with in excess of 100 years remaining on the lease are often regarded as a ‘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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Clifton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clifton valuers.
Following lengthy discussions with the landlord of her ground floor flat in Clifton, Natalie commenced the lease extension process as the 80 year threshold was fast coming. The lease extension completed in February 2010. The landlord’s fees were restricted to below 700 pounds.
Last June we were e-mailed by Mr Teddy Bonnet , who took over the lease of a ground floor apartment in Clifton in February 2010. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Clifton with an extended lease were in the region of £237,600. The mid-range ground rent payable was £45 billed yearly. The lease expiry date was on 3 September 2092. Considering the 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.
Dr B González purchased a first floor flat in Clifton in September 1995. We are asked if we could approximate the price would be for a 90 year lease extension. Identical residencies in Clifton with a long lease were valued around £280,000. The average amount of ground rent was £55 billed yearly. The lease expired in 2103. Taking into account 78 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.