For those whose Claverdon home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Claverdon can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 dealing with Claverdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Kai, came precariously close to the eighty-year mark with the lease on his leasehold flat in Claverdon. In buying his home two decades ago, the lease term was of no relevance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Kai was able to extend his lease just under the wire last January. Kai and the freeholder eventually settled on an amount of £5,500 . If the lease had gone below 80 years, the sum would have become more costly by a minimum £1,125.
Mr and Mrs. D Gray purchased a first floor apartment in Claverdon in September 2004. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical properties in Claverdon with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected per annum. The lease finished on 15 July 2096. Having 70 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
Last Winter we were contacted by Mr and Mrs. N Bonnet , who took over the lease of a basement apartment in Claverdon in April 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Claverdon with 100 year plus lease were valued about £223,400. The mid-range ground rent payable was £60 billed quarterly. The lease came to a finish in 2085. Considering the 59 years left we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including costs.