Main reasons to commence your Clapton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Clapton property value

It’s a harsh truth that a Clapton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Clapton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Clapton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.

Lenders may decide not to grant a mortgage on a short lease

The trend since over the last decade has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past mortgage companies were content with 25 years plus the term of the loan - routinely 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 a prerequisite.

Get in touch with one of our Clapton lease extension solicitors or enfranchisement solicitors

Lease extensions in Clapton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.

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 dealing with Clapton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Clapton Lease Extension Case Summaries:

Jamie, Clapton, London,

Jamie was the the leasehold owner of a conversion apartment in Clapton on the market with a lease of just over 61 years left. Jamie informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.

Clapton case:

Mr and Mrs. F Roberts was assigned a lease of a one bedroom apartment in Clapton in September 2012. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative homes in Clapton with a long lease were worth £186,000. The mid-range amount of ground rent was £65 billed quarterly. The lease ended in 2084. Considering the 58 years remaining we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including expenses.