The re-sale value of a leasehold property in Clifton Village depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded ahead of the 80 year threshold. Current legislation enables Clifton Village qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Clifton Village with over one hundred years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Clifton Village leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alexander owned a studio flat in Clifton Village on the market with a lease of fraction over sixty years unexpired. Alexander on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr G Leroy owned a studio flat in Clifton Village in August 2002. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Clifton Village with an extended lease were valued around £264,000. The average ground rent payable was £60 invoiced yearly. The lease finished in 2079. Taking into account 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.
Mr P Nelson purchased a basement apartment in Clifton Village in April 1996. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative premises in Clifton Village with a long lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2090. Considering the 64 years left we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of fees.