With a domestic leasehold property in Clifton, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Anyone in Clifton with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to 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. |
| Chelsea 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | 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 |
Irrespective of whether you are a tenant or a landlord in Clifton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clifton valuers.
Freddie was the the leasehold proprietor of a 2 bedroom flat in Clifton on the market with a lease of fraction over 59 years unexpired. Freddie informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. V Harris took over the lease of a newly refurbished apartment in Clifton in March 2001. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparative properties in Clifton with 100 year plus lease were valued about £173,800. The mid-range ground rent payable was £65 collected per annum. The lease expiry date was on 3 September 2081. Considering the 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.
In 2010 we were contacted by Mr Jason Rodríguez who, having moved into a studio flat in Clifton in January 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar premises in Clifton with a long lease were valued about £235,200. The mid-range ground rent payable was £45 collected annually. The lease concluded on 18 January 2092. Having 66 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.