Clare residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold properties in Clare with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Clare leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her two bedroom flat in Clare, Charlotte commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction was concluded in May 2007. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. T Brown , who bought a basement flat in Clare in September 2004. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative premises in Clare with a long lease were worth £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2104. Considering the 79 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. R Wilson purchased a ground floor apartment in Clare in July 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable residencies in Clare with a long lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease expired on 10 August 2093. Given that there were 68 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.