The market value of a leasehold property in Clarborough is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed in advance of the 80 year threshold. Leasehold Reform legislation enables Clarborough qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Clarborough with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Clarborough lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Evan owned a high value apartment in Clarborough being marketed with a lease of fraction over 59 years remaining. Evan informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan obtained expert advice and secured satisfactory resolution informally and sell the property.
Mr and Mrs. U Garcia completed a newly refurbished apartment in Clarborough in May 2008. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical premises in Clarborough with a long lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired in 2100. Given that there were 75 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
In 2013 we were approached by Mr Connor Ramírez who, having bought a newly refurbished flat in Clarborough in July 2009. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Clarborough with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 billed every twelve months. The lease lapsed in 2089. Taking into account 64 years outstanding we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.