When it comes to domestic leasehold premises in Clent, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years remaining. Residents in Clent with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Clent with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Clent leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Arthur, started to get close to the eighty-year mark with the lease on his studio apartment in Clent. Having bought his flat twenty years ago, the length of the lease was of minimal concern. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Arthur arranged for a lease extension just under the wire in June. Arthur and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,100.
In 2013 we were approached by Mr Charlie Taylor who, having purchased a one bedroom apartment in Clent in September 2008. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar premises in Clent with an extended lease were valued around £300,000. The average amount of ground rent was £50 billed quarterly. The lease concluded on 14 September 2101. Taking into account 76 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
In 2010 we were contacted by Dr G Ramírez who, having owned a ground floor flat in Clent in January 1997. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar premises in Clent with an extended lease were valued around £252,800. The average ground rent payable was £65 invoiced every twelve months. The lease ended in 2090. Taking into account 65 years left we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus costs.