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 becomes more expensive. Most owners of residential leasehold property in Clarbeston Road enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Clarbeston Road you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Clarbeston Road leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 secure professional help from a conveyancing solicitor and valuer 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.
Off the back of protracted correspondence with the landlord of her two bedroom flat in Clarbeston Road, Lydia started the lease extension process as the 80 year deadline was quickly nearing. The lease extension was finalised in August 2006. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Ms Francesca Murphy , who was assigned a lease of a ground floor apartment in Clarbeston Road in May 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical residencies in Clarbeston Road with 100 year plus lease were in the region of £186,000. The average amount of ground rent was £65 invoiced annually. The lease finished on 16 July 2083. Considering the 58 years left we calculated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 not including fees.
Mr and Mrs. S Alexander moved into a first floor flat in Clarbeston Road in September 2009. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Clarbeston Road with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 24 April 2094. Having 69 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.