On the balance of probabilities if you own a flat in Claverdon you actually own a long leasehold interest over your property
Leasehold residencies in Claverdon with in excess of 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Claverdon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Claverdon valuers.
Blake owned a studio flat in Claverdon being marketed with a lease of fraction over sixty years left. Blake informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Winter we were contacted by Dr A Mason , who moved into a first floor flat in Claverdon in February 1995. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Claverdon with a long lease were valued around £189,000. The average amount of ground rent was £55 billed every twelve months. The lease finished on 6 September 2078. Considering the 53 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Mr and Mrs. T Lefebvre was assigned a lease of a garden apartment in Claverdon in September 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Claverdon with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease ended in 2098. Having 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.