There is no doubt about it a leasehold property in Claverley is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Claverley will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with undertake Claverley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
William was the the leasehold owner of a high value apartment in Claverley being marketed with a lease of just over 72 years unexpired. William on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mr Ryan Moore bought a purpose-built flat in Claverley in September 1995. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable properties in Claverley with a long lease were worth £290,000. The average ground rent payable was £45 collected yearly. The lease lapsed on 2 July 2098. Considering the 73 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Last July we were e-mailed by Mr K Bertrand , who completed a recently refurbished apartment in Claverley in November 2001. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical premises in Claverley with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £65 invoiced yearly. The lease ended in 2087. Having 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus expenses.