Clayton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Clayton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Clayton you must check if your lease has between 70 and 90 years left. There are good reasons why a Clayton flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Clayton with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Clayton can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Clayton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a studio flat in Clayton on the market with a lease of a little over fifty eight years outstanding. Riley on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last month we were approach by Dr M Lambert , who bought a one bedroom flat in Clayton in May 2006. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Clayton with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 invoiced annually. The lease expiry date was on 25 November 2102. Given that there were 76 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
In 2011 we were called by Mr Reuben Ward who, having moved into a ground floor apartment in Clayton in February 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Clayton with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2082. Given that there were 56 years outstanding we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including expenses.