As the the remaining lease term of a Clophill residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Clophill will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Clophill can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Clophill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander was the the leasehold owner of a conversion apartment in Clophill on the market with a lease of a few days over 72 years outstanding. Alexander informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Summer we were called by Mr Adam Gunderson , who completed a ground floor flat in Clophill in April 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Clophill with a long lease were valued about £227,800. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed on 13 July 2090. Taking into account 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Ms Robyn Leroy completed a ground floor apartment in Clophill in August 1995. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative homes in Clophill with a long lease were in the region of £275,000. The average ground rent payable was £55 billed yearly. The lease ended in 2101. Having 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.