It’s a harsh certainty that a Clarborough residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Clarborough property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Clarborough will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Clarborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her ground floor flat in Clarborough, Chantelle initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was finalised in January 2011. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. K Clark who, having was assigned a lease of a garden apartment in Clarborough in July 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar homes in Clarborough with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 collected yearly. The lease ran out in 2106. Given that there were 80 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Last year we were called by Mr and Mrs. C Bonnet , who completed a one bedroom flat in Clarborough in July 2002. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable flats in Clarborough with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced annually. The lease ran out in 2095. Having 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.