The only way is down when it comes to Clerkenwell lease terms. Clerkenwell properties that have a residual term lower than eighty years will de-escalate in market price at a rapid rate, and the cost of extending your lease will rise.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Clerkenwell 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.
Trailing lengthy correspondence with the landlord of her leasehold apartment in Clerkenwell, Phoebe initiated the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was finalised in February 2013. The freeholder’s costs were kept to an absolute minimum.
Dr Kian Nelson purchased a garden flat in Clerkenwell in June 2009. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Clerkenwell with an extended lease were worth £173,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease came to a finish on 20 January 2079. Considering the 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.
An example of a Lease Extension matter before the tribunal for a Clerkenwell flat is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The remaining number of years on the lease was 66.8 years.