The re-sale value of a leasehold property in Claverdon depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the eighty year cut off point. Statute enables Claverdon qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Claverdon can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Claverdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy discussions with the freeholder of her basement apartment in Claverdon, Jennifer started the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in March 2005. The landlord’s costs were restricted to a tad over 600 GBP.
Last month we were phoned by Dr H Wilson , who purchased a garden flat in Claverdon in March 2006. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative flats in Claverdon with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected monthly. The lease concluded on 11 July 2097. Considering the 72 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last year we were e-mailed by Ms N Baker , who completed a one bedroom flat in Claverdon in October 2011. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative homes in Claverdon with an extended lease were worth £233,200. The average amount of ground rent was £60 collected per annum. The lease ran out on 5 March 2086. Taking into account 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.