Unfortunately that a Clitheroe residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Clitheroe property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Clitheroe will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Clitheroe can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge procuring Clitheroe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Owen, came precariously near to the 80-year threshold with the lease on his ground floor flat in Clitheroe. In buying his property 18 years ago, the length of the lease was of little relevance. As luck would have it, he realised he needed to take action soon on Extending the lease. Owen arranged for a lease extension at the eleventh hour in August. Owen and the freeholder ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £975.
Last Spring we were called by Ms C Brown , who acquired a garden apartment in Clitheroe in July 2012. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical premises in Clitheroe with a long lease were worth £285,000. The average ground rent payable was £55 billed yearly. The lease lapsed on 5 March 2105. Having 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last Summer we were approach by Dr Sam Morris , who took over the lease of a one bedroom apartment in Clitheroe in June 2001. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable residencies in Clitheroe with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish in 2085. Taking into account 60 years left we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.