For those whose Claydon home is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| 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. |
Lease extensions in Claydon can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Claydon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Adam, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Claydon. Having bought his home two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Adam was able to extend his lease just ahead of time last August. Adam and the landlord eventually agreed on a premium of £5,000 . If the lease had gone below 80 years, the amount would have increased by a minimum £850.
Mr Jacob Vincent owned a first floor apartment in Claydon in May 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Claydon with a long lease were valued about £267,600. The mid-range ground rent payable was £65 collected annually. The lease came to a finish in 2093. Given that there were 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including fees.
In 2010 we were approached by Mr and Mrs. D Díaz who, having took over the lease of a purpose-built flat in Claydon in March 2002. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparative homes in Claydon with a long lease were in the region of £206,200. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2082. Considering the 56 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.