There is no doubt about it a leasehold property in Clare is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Clare will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Clare with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Clare,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clare valuers.
In the wake of 9 months of protracted negotiations with the freeholder of her purpose-built flat in Clare, Isabel started the lease extension process as the 80 year mark was rapidly advancing. The legal work was finalised in January 2007. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were contacted by Mr Michael Mercier , who moved into a studio apartment in Clare in April 1996. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical premises in Clare with a long lease were worth £216,000. The average ground rent payable was £60 invoiced annually. The lease expired in 2084. Having 58 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
In 2010 we were e-mailed by Dr Amber Lambert who, having purchased a garden apartment in Clare in May 2012. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable flats in Clare with a long lease were valued around £200,000. The average amount of ground rent was £50 invoiced annually. The lease expired in 2104. Considering the 78 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.