Chances are that where you own a flat in Clifton you actually own a long leasehold interest over your property
Leasehold properties in Clifton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Clifton,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 Clifton valuers.
Austin owned a high value flat in Clifton on the market with a lease of just over 72 years outstanding. Austin on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Autumn we were e-mailed by Mr Ryan Cox , who purchased a first floor apartment in Clifton in June 2006. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative premises in Clifton with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished in 2098. Considering the 74 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Dr Chelsea Mercier acquired a ground floor flat in Clifton in August 2002. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparative homes in Clifton with a long lease were worth £166,400. The average ground rent payable was £60 billed per annum. The lease ran out in 2078. Considering the 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of costs.