Why you should commence your Clayton lease extension

Top reasons for lease extension now:

A Clayton leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Clayton depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year threshold. Leasehold Reform legislation entitles Clayton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Clayton property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Clayton with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Clayton lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Clayton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clayton valuers.

Clayton Lease Extension Case Summaries:

Kayleigh, Clayton, West Yorkshire,

Off the back of unsuccessful negotiations with the landlord of her purpose-built flat in Clayton, Kayleigh initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The transaction was concluded in June 2005. The landlord’s charges were negotiated to about 650 pounds.

Clayton case:

Last Autumn we were phoned by Mrs Jade Ali , who completed a purpose-built apartment in Clayton in August 1998. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative residencies in Clayton with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 3 June 2083. Given that there were 57 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.

Clayton case:

In 2010 we were approached by Dr Lily Cox who, having completed a ground floor apartment in Clayton in April 2002. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar premises in Clayton with an extended lease were in the region of £245,000. The average amount of ground rent was £50 collected every twelve months. The lease expired in 2094. Considering the 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.