When it comes to domestic leasehold property in Clayton, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years left. Residents in Clayton with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the current legislation the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Clayton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clayton valuers.
Jude was the the leasehold proprietor of a studio apartment in Clayton on the market with a lease of just over 59 years left. Jude on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude procured expert advice and secured an acceptable resolution informally and sell the flat.
Mr and Mrs. S Pérez purchased a basement flat in Clayton in September 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Clayton with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed monthly. The lease lapsed on 24 November 2088. Given that there were 62 years unexpired we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.
Last Christmas we were phoned by Mr W Peterson , who moved into a ground floor apartment in Clayton in May 1995. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Clayton with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed in 2099. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.