The nearer a residential lease in Claydon gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Claydon will meet the qualifying criteria; however a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Claydon with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Claydon 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 conveyancing solicitor we work with provide it.
Luca was the the leasehold proprietor of a 2 bedroom flat in Claydon on the market with a lease of just over fifty eight years unexpired. Luca informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2013 we were phoned by Dr Toby Stewart who, having purchased a ground floor apartment in Claydon in April 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Claydon with 100 year plus lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease elapsed in 2086. Taking into account 60 years outstanding we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus expenses.
Mr and Mrs. J Bertrand owned a ground floor apartment in Claydon in February 1998. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative properties in Claydon with a long lease were valued around £210,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2106. Taking into account 80 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.