Top reasons for Clapton lease extension

Why you should commence your Clapton lease extension today:

Increase your lease and increase your Clapton property value

For those whose Clapton flat is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Clapton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not issue a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Clapton lease extensions?

Irrespective of whether you are a tenant or a landlord in Clapton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Clapton valuers.

Clapton Lease Extension Case Summaries:

Jake, Clapton, London

In recent months Jake, started to get near to the eighty-year threshold with the lease on his basement flat in Clapton. In buying his home 18 years previously, the unexpired term was of little interest. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Jake extended the lease just under the wire last April. Jake and the freeholder ultimately agreed on sum of £6,000 . If the lease had slipped lower than eighty years, the premium would have escalated by at least £1,050.

Clapton case:

In 2012 we were called by Mr P Evans who, having bought a first floor flat in Clapton in May 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Clapton with an extended lease were valued about £255,000. The average ground rent payable was £50 billed monthly. The lease termination date was in 2096. Taking into account 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.