It’s an underpublicised truth that a Clevedon residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Clevedon property prices.Where your lease has approximately ninety years left, you should start thinking about 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 dips below eighty years - otherwise a higher premium will be payable. Most flat owners in Clevedon will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Clevedon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Gabriel, came perilously close to the 80-year threshold with the lease on his one bedroom flat in Clevedon. Having bought his flat 19 years previously, the length of the lease was of minimal interest. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Gabriel extended the lease at the eleventh hour in August. Gabriel and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If the lease had dipped lower than 80 years, the figure would have become more costly by a minimum £875.
In 2014 we were e-mailed by Dr I Hernández who, having bought a one bedroom flat in Clevedon in January 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Clevedon with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected annually. The lease lapsed in 2082. Given that there were 57 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
Last month we were phoned by Mr V Carter , who purchased a one bedroom apartment in Clevedon in June 2006. We are asked if we could approximate the price would be for a 90 year lease extension. Similar flats in Clevedon with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed quarterly. The lease finished on 2 October 2093. Taking into account 68 years outstanding we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 not including costs.