On the balance of probabilities if you own a flat in Clayton you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
The lawyers that we work with procure Clayton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Omar was the the leasehold proprietor of a high value apartment in Clayton being marketed with a lease of just over 59 years remaining. Omar on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Mr and Mrs. C Mitchell completed a one bedroom flat in Clayton in April 2012. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable homes in Clayton with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 billed annually. The lease termination date was on 16 November 2099. Taking into account 74 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2009 we were called by Mr and Mrs. A Peterson who, having took over the lease of a ground floor flat in Clayton in June 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Clayton with a long lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease end date was in 2079. Taking into account 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.