Clarbeston Road leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher premium will be due. Flat owners in Clarbeston Road will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Clarbeston Road,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clarbeston Road valuers.
Two years ago Jason, started to get near to the 80-year mark with the lease on his first floor flat in Clarbeston Road. Having purchased his home 18 years ago, the length of the lease was of little relevance. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Jason extended the lease at the eleventh hour last March. Jason and the freeholder via the management company in the end agreed on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by a minimum £950.
Dr Eliot Bailey acquired a one bedroom apartment in Clarbeston Road in May 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Clarbeston Road with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished on 15 May 2088. Having 63 years left we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including expenses.
Mr and Mrs. C Brooks bought a garden flat in Clarbeston Road in January 2003. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Clarbeston Road with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 collected annually. The lease expired in 2099. Taking into account 74 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.