There is no doubt about it a leasehold flat or house in Clarborough is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Clarborough will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Clarborough can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 Clarborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jason, came seriously near to the eighty-year mark with the lease on his leasehold flat in Clarborough. Having purchased his property 19 years previously, the unexpired term was of minimal significance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Jason arranged for a lease extension at the eleventh hour last August. Jason and the freeholder ultimately agreed on sum of £5,000 . If the lease had dipped lower than 80 years, the figure would have become more exhorbitant by a minimum £850.
Last Winter we were called by Mr and Mrs. M Reed , who was assigned a lease of a ground floor apartment in Clarborough in June 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Clarborough with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 23 May 2099. Having 73 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Mr Archie García owned a studio flat in Clarborough in November 1998. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar properties in Clarborough with 100 year plus lease were valued about £240,600. The average ground rent payable was £60 invoiced per annum. The lease end date was on 3 June 2088. Considering the 62 years as a residual term we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.