Clent leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Clent will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Clent with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Clent 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.
Last Spring Felix, started to get near to the eighty-year threshold with the lease on his first floor flat in Clent. Having purchased his flat 19 years ago, the length of the lease was of minimal significance. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Felix extended the lease just under the wire in May. Felix and the landlord who owned the flat above in the end settled on sum of £5,500 . If the lease had fallen lower than eighty years, the sum would have become more costly by a minimum £1,125.
Last Summer we were e-mailed by Mr and Mrs. J Ricardo , who bought a purpose-built flat in Clent in August 2001. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Clent with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired in 2105. Given that there were 79 years left we approximated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 not including professional charges.
Last Autumn we were called by Dr T Ali , who acquired a one bedroom apartment in Clent in October 1998. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable properties in Clent with a long lease were valued about £275,000. The average amount of ground rent was £65 collected yearly. The lease expired in 2094. Taking into account 68 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.