The re-sale value of a leasehold property in Clophill depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be concluded prior to the eighty year mark. Current legislation enables Clophill qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Clophill with over 100 years outstanding 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| TSB | |
| The Mortgage Works | |
| Virgin |
The lawyers that we work with handle 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 lawyer we work with provide it.
Arthur was the the leasehold proprietor of a 2 bedroom flat in Clophill on the market with a lease of a few days over sixty years remaining. Arthur informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr N Torres completed a first floor apartment in Clophill in April 1995. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative residencies in Clophill with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated in 2092. Considering the 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Mr Toby Evans moved into a first floor flat in Clophill in May 1999. The question was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical properties in Clophill with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expiry date was in 2103. Considering the 77 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.