The market value of Clent leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Clent 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 Clent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Joseph, started to get near to the 80-year threshold with the lease on his studio apartment in Clent. Having bought his flat 19 years previously, the length of the lease was of no bearing. by good luck, he noticed he needed to take action soon on a lease extension. Joseph extended the lease just in the nick of time in March. Joseph and the freeholder via the management company eventually agreed on an amount of £5,000 . If he had missed the deadline, the figure would have gone up by at least £975.
Mrs A Richardson acquired a one bedroom apartment in Clent in August 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Clent with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected annually. The lease end date was on 9 July 2082. Given that there were 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.
Dr B Moreau bought a studio flat in Clent in February 1995. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Similar homes in Clent with an extended lease were valued about £200,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2102. Having 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.