Why you should commence your Clophill lease extension
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Main reasons to start your Clophill lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/clophill">Clophill</a> leasehold property depreciates with the years remaining on the lease.
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<p> When it comes to domestic leasehold property in Clophill, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Clophill with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years remaining, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable. <h4>Clophill property with a lease extension is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
<h4>Lenders may decide not to finance a property with a short lease</h4> Nearly all mortgage lenders will be unwilling to lend on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will undoubtedly find it difficult in obtaining a mortgage and this will result in your Clophill property being difficult to dispose of or to obtain finance on. <p>
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<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<h4> Get in touch with one of our Clophill lease extension solicitors or enfranchisement solicitors
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<p> Irrespective of whether you are a tenant or a landlord in Clophill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Clophill valuers.
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Clophill Lease Extension Case Summaries:
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<h5> Lydia, Clophill, Bedfordshire,</h5>
<p> After lengthy negotiations with the landlord of her garden flat in Clophill, Lydia started the lease extension process just as her lease was coming close to the critical 80-year deadline. The legal work completed in October 2010. The landlord’s fees were negotiated to a tad over 500 GBP.
<h5>Clophill case:</h5>
<p> Dr E Cooper acquired a one bedroom apartment in Clophill in March 2011. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative properties in Clophill with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected per annum. The lease concluded in 2086. Taking into account 60 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus legals.
<h5>Clophill case:</h5>
<p> Mr Hugo Bertrand acquired a one bedroom apartment in Clophill in November 2001. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical flats in Clophill with an extended lease were valued around £255,000. The average ground rent payable was £50 invoiced quarterly. The lease lapsed in 2097. Considering the 71 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
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