Unfortunately that a Clophill residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Clophill property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Clophill will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Clophill can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Clophill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Henry, started to get close to the eighty-year mark with the lease on his garden apartment in Clophill. Having purchased his flat two decades ago, the lease term was of no bearing. Luckily, he noticed he needed to take action soon on a lease extension. Henry arranged for a lease extension just under the wire in September. Henry and the landlord in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the price would have become more costly by at least £1,000.
In 2014 we were approached by Dr Lucas Jackson who, having owned a newly refurbished apartment in Clophill in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Clophill with a long lease were valued about £183,600. The average amount of ground rent was £65 collected every twelve months. The lease finished on 22 August 2082. Taking into account 57 years left we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
In 2012 we were called by Mr and Mrs. N Stewart who, having purchased a first floor apartment in Clophill in March 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Clophill with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish in 2093. Given that there were 68 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.