The market value of a leasehold property in Clayhall depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year mark. Leasehold Reform legislation enables Clayhall qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Clayhall,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Clayhall valuers.
Ben owned a conversion apartment in Clayhall on the market with a lease of a little over 61 years outstanding. Ben on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ben to exercise his statutory right. Ben obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Summer we were e-mailed by Ms K Brown , who purchased a one bedroom flat in Clayhall in May 1999. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar homes in Clayhall with an extended lease were in the region of £257,800. The average ground rent payable was £65 billed quarterly. The lease termination date was on 23 August 2091. Taking into account 65 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Clayhall residence is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The remaining number of years on the lease was 65 and 61.