The nearer a domestic lease in Clophill gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 99 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired 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 consider extending sooner as opposed to later. Most flat owners in Clophill will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Clophill with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Clophill,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 Clophill valuers.
In recent months Ethan, started to get close to the eighty-year mark with the lease on his two bedroom flat in Clophill. In buying his home 18 years ago, the unexpired term was of minimal interest. Thankfully, he realised he needed to take action soon on a lease extension. Ethan was able to extend his lease just under the wire last July. Ethan and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,075.
In 2009 we were approached by Dr Joseph Leroy who, having owned a purpose-built apartment in Clophill in November 2002. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical premises in Clophill with 100 year plus lease were worth £218,000. The average ground rent payable was £45 collected monthly. The lease finished in 2089. Considering the 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus legals.
In 2012 we were e-mailed by Mr and Mrs. K Ali who, having moved into a garden apartment in Clophill in August 2000. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Clophill with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected annually. The lease came to a finish in 2100. Given that there were 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.