Chances are that where you own a flat in Clayhall you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Retaining our service will provide you better control over the value of your Clayhall leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Eliot, came very near to the 80-year mark with the lease on his one bedroom apartment in Clayhall. Having purchased his flat 18 years previously, the lease term was of no bearing. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Eliot arranged for a lease extension just under the wire last August. Eliot and the freeholder via the management company in the end agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have increased by at least £975.
Mr and Mrs. O Edwards owned a one bedroom apartment in Clayhall in January 2001. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar premises in Clayhall with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed yearly. The lease lapsed in 2095. Considering the 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement case for a Clayhall premises is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The number of years remaining on the existing lease(s) was 65 and 61.