With a long leasehold premises in Clophill, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Residents in Clophill with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When a lease has under eighty years left, under the current statute the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Virgin |
Retaining our service will provide you increased control over the value of your Clophill leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a studio flat in Clophill being sold with a lease of just over 61 years left. Omar informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
In 2014 we were phoned by Ms Daisy García who, having owned a studio flat in Clophill in May 2010. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical flats in Clophill with a long lease were valued about £265,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed in 2100. Given that there were 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last July we were approach by Mr and Mrs. U Adams , who bought a one bedroom flat in Clophill in November 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Clophill with an extended lease were worth £166,400. The average ground rent payable was £60 billed monthly. The lease ended on 6 June 2080. Taking into account 54 years left we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.