Chances are that if you own a flat in Clayton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Clayton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jack, came critically near to the eighty-year threshold with the lease on his studio flat in Clayton. In buying his home two decades ago, the lease term was of minimal importance. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Jack extended the lease just in the nick of time in September. Jack and the landlord ultimately settled on a premium of £5,000 . If the lease had slipped to less than eighty years, the price would have become more exhorbitant by at least £975.
In 2009 we were e-mailed by Dr Daisy Hall who, having bought a ground floor apartment in Clayton in February 2012. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable premises in Clayton with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed in 2092. Considering the 67 years outstanding we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
In 2014 we were called by Mr and Mrs. P Morgan who, having owned a purpose-built flat in Clayton in August 2007. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar residencies in Clayton with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease ended on 25 April 2103. Having 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.