It’s a harsh certainty that a Clifton Village 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 first few years due to the deflation being disguised by increases in the Clifton Village property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Clifton Village will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Clifton Village,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Clifton Village valuers.
Last year Isaac, came critically close to the eighty-year mark with the lease on his studio apartment in Clifton Village. Having purchased his flat 19 years previously, the lease term was of little relevance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Isaac arranged for a lease extension at the eleventh hour in June. Isaac and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had slid to less than eighty years, the price would have become more exhorbitant by a minimum £1,025.
Mr and Mrs. K Sharif owned a purpose-built apartment in Clifton Village in October 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable flats in Clifton Village with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease expired on 2 July 2086. Considering the 60 years remaining we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of legals.
In 2012 we were contacted by Mr and Mrs. V Gunderson who, having bought a one bedroom flat in Clifton Village in April 2000. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Clifton Village with an extended lease were valued about £255,000. The average ground rent payable was £50 collected monthly. The lease concluded on 18 September 2097. Considering the 71 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.