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 early years due to the loss of value being disguised by increases in the Clophill property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Clophill will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Clophill with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| 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 get professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Two years ago Jack, came critically near to the 80-year mark with the lease on his garden apartment in Clophill. In buying his property twenty years previously, the unexpired term was of no concern. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Jack was able to extend his lease just ahead of time in September. Jack and the landlord in the end agreed on the final figure of £5,500 . If he not met the deadline, the sum would have become more costly by a minimum £975.
Mr and Mrs. I Torres moved into a studio apartment in Clophill in April 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Clophill with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced monthly. The lease elapsed on 19 November 2079. Having 54 years left we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.
In 2013 we were called by Dr B Simon who, having owned a one bedroom flat in Clophill in July 2004. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative properties in Clophill with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected every twelve months. The lease end date was in 2090. Considering the 65 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.