The value of Clophill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Clophill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Lucas owned a high value flat in Clophill being marketed with a lease of fraction over 59 years remaining. Lucas on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Leon Stewart purchased a one bedroom flat in Clophill in August 1997. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable residencies in Clophill with an extended lease were worth £176,200. The average amount of ground rent was £65 collected per annum. The lease concluded on 5 February 2082. Taking into account 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.
Last year we were called by Dr David Roux , who was assigned a lease of a garden apartment in Clophill in June 1996. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Clophill with a long lease were valued around £237,600. The average ground rent payable was £45 billed yearly. The lease lapsed on 17 May 2093. Given that there were 67 years left we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including expenses.