When it comes to long leasehold property in Clevedon, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years left. Residents in Clevedon with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the current statute the landlord can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Clevedon with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
In 2014 Ethan, started to get close to the 80-year threshold with the lease on his ground floor apartment in Clevedon. In buying his flat 19 years previously, the lease term was of little significance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Ethan extended the lease just in the nick of time in September. Ethan and the freeholder via the management company subsequently agreed on a premium of £5,000 . If the lease had descended to less than eighty years, the figure would have escalated by at least £1,050.
Mr and Mrs. U Patel owned a recently refurbished flat in Clevedon in July 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Clevedon with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 collected monthly. The lease terminated in 2104. Given that there were 78 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Last Spring we were contacted by Dr S Wood , who acquired a garden flat in Clevedon in October 2001. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Identical homes in Clevedon with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 invoiced per annum. The lease termination date was in 2084. Having 58 years left we estimated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus expenses.