There is no doubt about it a leasehold flat or house in Clevedon is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Clevedon will qualify for this right; nevertheless a lawyer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Clevedon 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.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Clevedon, Paige commenced the lease extension process as the eighty year deadline was rapidly nearing. The legal work was finalised in January 2008. The freeholder’s fees were restricted to less than 650 pounds.
Mr and Mrs. F François moved into a garden apartment in Clevedon in May 2012. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparable properties in Clevedon with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2092. Considering the 66 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
In 2012 we were e-mailed by Dr Elijah González who, having bought a one bedroom apartment in Clevedon in November 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Clevedon with a long lease were in the region of £280,000. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2103. Given that there were 77 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.