There is no doubt about it a leasehold flat or house in Clapham and Salph End is a wasting asset as a result of the diminishing lease term. Where the lease has, over one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Clapham and Salph End will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 handle Clapham and Salph End 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 conveyancer we work with provide it.
Elijah was the the leasehold owner of a 2 bedroom flat in Clapham and Salph End being marketed with a lease of fraction over 61 years outstanding. Elijah informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2013 we were approached by Mr and Mrs. J Norbert who, having moved into a newly refurbished flat in Clapham and Salph End in July 1999. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Similar premises in Clapham and Salph End with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 billed yearly. The lease lapsed in 2079. Considering the 54 years left we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including professional charges.
In 2009 we were approached by Mr and Mrs. A Brooks who, having moved into a garden flat in Clapham and Salph End in August 2008. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Identical flats in Clapham and Salph End with an extended lease were valued about £232,800. The average ground rent payable was £45 collected quarterly. The lease lapsed on 13 April 2090. Taking into account 65 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.