The market value of a leasehold property in Clophill depends on how long the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year mark. Leasehold Reform legislation enables Clophill qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Clophill can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Noah was the the leasehold owner of a conversion flat in Clophill being sold with a lease of fraction over 59 years remaining. Noah on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. U Bennett who, having completed a garden apartment in Clophill in January 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Clophill with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected quarterly. The lease elapsed on 23 May 2075. Taking into account 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
Last Spring we were phoned by Dr Jennifer Bailey , who took over the lease of a basement flat in Clophill in April 1998. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Clophill with an extended lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 15 May 2086. Having 61 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.