When it comes to long leasehold property in Clapton, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Anyone in Clapton with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under 80 years left, under the relevant statute the landlord can calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Clapton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Clapton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her leasehold apartment in Clapton, Alexandra initiated the lease extension process as the 80 year deadline was rapidly advancing. The transaction completed in September 2009. The landlord’s costs were kept to an absolute minimum.
Last year we were phoned by Mr Lucas Fournier , who moved into a purpose-built apartment in Clapton in May 2012. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical flats in Clapton with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed monthly. The lease ended in 2101. Having 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Clapton flat is 104 Nightingale Road in May 2009. The Tribunal's Decision is that the premium torbe paid for the enfranchisement in this case is £112,174 This case was in relation to 10 flats. The unexpired term as at the valuation date was 71.25 years.