Claverley leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Claverley will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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 obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Harrison was the the leasehold owner of a studio apartment in Claverley on the market with a lease of a few days over 72 years left. Harrison on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Mrs J David took over the lease of a basement apartment in Claverley in August 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Claverley with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 collected per annum. The lease terminated on 27 August 2092. Taking into account 66 years remaining we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of legals.
In 2010 we were contacted by Mr and Mrs. N Kelly who, having purchased a studio flat in Claverley in September 1997. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparative premises in Claverley with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 28 August 2081. Taking into account 55 years left we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.