It’s a harsh certainty that a Clapham and Salph End residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Clapham and Salph End property market.Where your lease has approximately 90 years left, 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 dips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Clapham and Salph End will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Clapham and Salph End leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Zachary, came critically close to the eighty-year threshold with the lease on his purpose- built flat in Clapham and Salph End. In buying his property two decades ago, the length of the lease was of no concern. by good luck, he recognised he needed to take steps soon on Extending the lease. Zachary arranged for a lease extension just under the wire last August. Zachary and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had dropped to less than 80 years, the premium would have increased by a minimum £1,125.
Last Winter we were contacted by Ms F Ricardo , who took over the lease of a one bedroom apartment in Clapham and Salph End in February 2010. The question was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Clapham and Salph End with an extended lease were in the region of £290,000. The average ground rent payable was £60 billed monthly. The lease elapsed in 2106. Taking into account 80 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Dr Chantelle Davis took over the lease of a one bedroom flat in Clapham and Salph End in October 1996. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical homes in Clapham and Salph End with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2086. Having 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.