Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Claverley. Clearly, the period of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Claverley have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful attention before delaying your Claverley lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Claverley with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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 Claverley can be a difficult process. We recommend you secure professional help from a lawyer 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 Claverley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her basement apartment in Claverley, Eleanor initiated the lease extension process as the eighty year deadline was swiftly coming. The lease extension completed in April 2012. The landlord’s charges were kept to an absolute minimum.
Last year we were phoned by Dr Oscar Jones , who took over the lease of a studio apartment in Claverley in January 1995. The question was if we could estimate the premium could be to extend the lease by an additional years. Similar residencies in Claverley with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed in 2079. Taking into account 54 years outstanding we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.
In 2012 we were called by Mr and Mrs. D Mercier who, having moved into a basement flat in Claverley in August 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Claverley with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £45 collected per annum. The lease ended on 9 August 2099. Having 74 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.