Upper Clapton leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Upper Clapton will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Upper Clapton with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Upper Clapton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Upper Clapton valuers.
During the course of the last few months Archie, came critically near to the 80-year threshold with the lease on his garden apartment in Upper Clapton. Having bought his home twenty years previously, the lease term was of little bearing. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Archie extended the lease at the eleventh hour in July. Archie and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had slid to less than 80 years, the amount would have increased by at least £900.
Ms Y Gómez bought a studio apartment in Upper Clapton in January 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Upper Clapton with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed on 1 October 2086. Considering the 61 years as a residual term we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Upper Clapton property is Flat 25, Stamford Hill Mansions Stamford Hill in April 2010. The Tribunal therefore determined that the premium to be paid by the lessee to the freeholder for the extension of the lease should be £28,984.00 This case was in relation to 1 flat. The unexpired term as at the valuation date was 59 years.