As the the remaining lease term of a Claydon residential lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Claydon will qualify for this right; however a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 procure guidance from a conveyancer 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 Claydon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her first floor flat in Claydon, Lucy started the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction completed in July 2009. The freeholder’s costs were kept to an absolute minimum.
Dr Samuel Rivera took over the lease of a one bedroom flat in Claydon in October 2010. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Claydon with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2105. Given that there were 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Mr W Khan moved into a ground floor apartment in Claydon in June 2000. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Claydon with an extended lease were valued about £275,000. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2094. Having 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.