Clapham and Salph End leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Clapham and Salph End will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure 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.
Daniel was the the leasehold proprietor of a high value flat in Clapham and Salph End being marketed with a lease of a little over sixty years outstanding. Daniel on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert advice and secured an acceptable resolution informally and sell the flat.
Dr Oscar André took over the lease of a basement apartment in Clapham and Salph End in February 1996. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Clapham and Salph End with an extended lease were in the region of £208,200. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2087. Taking into account 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Last Autumn we were contacted by Mr and Mrs. Y Morris , who was assigned a lease of a studio apartment in Clapham and Salph End in September 2012. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Clapham and Salph End with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2098. Having 72 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.