The nearer a residential lease in Clitheroe gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Clitheroe will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Clitheroe can be a difficult process. We recommend you get 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 a wealth of experience dealing with Clitheroe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon owned a conversion apartment in Clitheroe being marketed with a lease of fraction over 72 years unexpired. Leon on an informal basis approached 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 at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Mrs G Morel was assigned a lease of a newly refurbished flat in Clitheroe in January 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Clitheroe with a long lease were worth £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease terminated on 11 July 2101. Taking into account 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2012 we were phoned by Ms Kelsey Davis who, having owned a garden apartment in Clitheroe in September 2007. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Clitheroe with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 3 October 2081. Having 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.