Unfortunately that a Clayton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Clayton property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Clayton will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Clayton with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Clayton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clayton valuers.
During the course of the last few months Jamie, came critically near to the eighty-year mark with the lease on his leasehold apartment in Clayton. In buying his home 18 years previously, the lease term was of no significance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Jamie was able to extend his lease just under the wire last March. Jamie and the landlord ultimately settled on an amount of £5,000 . If he had missed the deadline, the sum would have escalated by at least £875.
Dr Aimee Mason purchased a first floor apartment in Clayton in January 2003. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical flats in Clayton with an extended lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated in 2095. Having 69 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Last Summer we were approach by Mrs Samantha Turner , who owned a one bedroom apartment in Clayton in July 2000. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparable properties in Clayton with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 4 November 2106. Having 80 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.