When it comes to domestic leasehold premises in Upper Clapton, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Residents in Upper Clapton with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When the lease term has below eighty years remaining, under the current Act the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
The conveyancers that we work with undertake Upper Clapton 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 conveyancing solicitor we work with provide it.
Zachary owned a high value flat in Upper Clapton on the market with a lease of just over 61 years unexpired. Zachary informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
In 2012 we were e-mailed by Mrs I James who, having purchased a one bedroom flat in Upper Clapton in September 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical residencies in Upper Clapton with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 collected quarterly. The lease concluded on 4 September 2102. Having 77 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
An example of a Lease Extension decision for a Upper Clapton flat 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 related to 1 flat. The unexpired residue of the current lease was 59 years.