It’s a harsh truth that a Clevedon residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Clevedon property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Clevedon will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Clevedon with more than 100 years unexpired on the lease are sometimes 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Clevedon can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Alfie was the the leasehold proprietor of a high value flat in Clevedon being marketed with a lease of a little over 61 years left. Alfie on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. M White was assigned a lease of a one bedroom apartment in Clevedon in February 1999. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable premises in Clevedon with an extended lease were valued around £193,400. The average amount of ground rent was £65 billed every twelve months. The lease concluded in 2085. Having 59 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of costs.
Last Autumn we were called by Mr and Mrs. W Dupont , who took over the lease of a first floor apartment in Clevedon in March 1999. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar flats in Clevedon with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expired in 2096. Considering the 70 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 not including fees.