Clarbeston Road leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Clarbeston Road tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Clarbeston Road you really ought to see if your lease has between 70 and 90 years remaining. There are good reasons why a Clarbeston Road flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Clarbeston Road can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 Clarbeston Road lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden owned a conversion apartment in Clarbeston Road on the market with a lease of fraction over 59 years outstanding. Jayden on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Mr E Bonnet took over the lease of a ground floor flat in Clarbeston Road in October 2002. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable flats in Clarbeston Road with an extended lease were in the region of £203,200. The average ground rent payable was £65 collected per annum. The lease ended on 24 March 2087. Given that there were 61 years remaining we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
Last month we were approach by Mr and Mrs. T Bennett , who completed a ground floor apartment in Clarbeston Road in September 2008. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparable residencies in Clarbeston Road with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended on 7 January 2098. Given that there were 72 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.