Clifton leases on domestic deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Clifton will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Clifton with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The lawyers that we work with undertake Clifton 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.
Noah owned a high value apartment in Clifton on the market with a lease of a few days over 59 years left. Noah informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
Last Winter we were phoned by Mr and Mrs. D Martin , who bought a basement flat in Clifton in March 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar homes in Clifton with a long lease were valued around £260,000. The mid-range ground rent payable was £50 collected monthly. The lease ended in 2097. Taking into account 72 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. R Bailey who, having was assigned a lease of a basement apartment in Clifton in May 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Clifton with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2077. Considering the 52 years remaining we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including fees.