Unfortunately that a Clevedon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Clevedon property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Clevedon will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Clevedon with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Clevedon can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Clevedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the landlord of her purpose-built flat in Clevedon, Jordan started the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work was concluded in April 2013. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. O Mitchell who, having was assigned a lease of a basement flat in Clevedon in January 2009. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Clevedon with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced annually. The lease concluded on 21 November 2101. Given that there were 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
In 2009 we were contacted by Mr Freddie Phillips who, having bought a basement apartment in Clevedon in March 2008. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Clevedon with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected per annum. The lease concluded in 2081. Considering the 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.