Claverdon leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Claverdon will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you increased control over the value of your Claverdon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leo was the the leasehold proprietor of a 2 bedroom apartment in Claverdon on the market with a lease of a few days over sixty years left. Leo informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were phoned by Dr Noah Simon who, having acquired a ground floor flat in Claverdon in February 2007. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Similar properties in Claverdon with an extended lease were worth £225,800. The average ground rent payable was £60 billed quarterly. The lease expired on 17 April 2085. Having 60 years remaining we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus legals.
In 2013 we were approached by Ms Kirsty Fournier who, having acquired a one bedroom apartment in Claverdon in November 1995. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Claverdon with an extended lease were worth £210,000. The mid-range ground rent payable was £50 collected quarterly. The lease concluded in 2105. Considering the 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.