For anyone whose Clophill home is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold premises in Clophill with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with procure 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.
Luke was the the leasehold proprietor of a conversion apartment in Clophill on the market with a lease of fraction over 72 years unexpired. Luke on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Winter we were called by Mr and Mrs. K Green , who owned a garden flat in Clophill in August 2008. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Clophill with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 billed monthly. The lease terminated in 2104. Taking into account 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last Spring we were e-mailed by Mr Luca Martínez , who owned a purpose-built flat in Clophill in January 1997. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar premises in Clophill with 100 year plus lease were worth £186,000. The mid-range ground rent payable was £65 billed every twelve months. The lease concluded in 2084. Having 58 years remaining we calculated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 plus legals.