The market value of Clitheroe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
Leasehold premises in Clitheroe with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Clitheroe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clitheroe valuers.
Following lengthy discussions with the freeholder of her garden flat in Clitheroe, Kirsty initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in September 2006. The landlord’s costs were kept to an absolute minimum.
Mr Aiden Johnson purchased a studio flat in Clitheroe in October 2006. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparative premises in Clitheroe with an extended lease were in the region of £186,000. The average ground rent payable was £65 collected every twelve months. The lease terminated on 1 April 2083. Given that there were 58 years unexpired we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
Dr L Hall purchased a newly refurbished apartment in Clitheroe in April 2000. The question was if we could estimate the price would be to extend the lease by a further 90 years. Identical homes in Clitheroe with a long lease were valued around £250,000. The average amount of ground rent was £50 billed quarterly. The lease concluded in 2094. Taking into account 69 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.