Chances are that if you own a flat in Clayton you actually own a long leasehold interest over your property
Leasehold properties in Clayton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you increased control over the value of your Clayton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Owen was the the leasehold proprietor of a high value flat in Clayton on the market with a lease of just over 72 years outstanding. Owen on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2012 we were called by Mrs Grace Ali who, having owned a one bedroom flat in Clayton in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Clayton with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2104. Taking into account 79 years outstanding we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Last Summer we were called by Dr Dexter Nelson , who purchased a newly refurbished flat in Clayton in November 2005. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Clayton with a long lease were in the region of £193,400. The average amount of ground rent was £65 billed monthly. The lease came to a finish on 7 July 2084. Given that there were 59 years remaining we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.