Clitheroe leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about 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 Clitheroe will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancers that we work with handle Clitheroe 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.
Subsequent to protracted discussions with the freeholder of her studio flat in Clitheroe, Erin initiated the lease extension process as the 80 year mark was swiftly approaching. The transaction was finalised in February 2015. The landlord’s charges were negotiated to under 450 pounds.
In 2013 we were called by Mr and Mrs. G Cook who, having completed a ground floor flat in Clitheroe in November 2008. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical flats in Clitheroe with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed yearly. The lease ran out in 2102. Considering the 77 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
In 2014 we were approached by Ms Emma Torres who, having moved into a purpose-built flat in Clitheroe in September 2003. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical premises in Clitheroe with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease finished in 2082. Taking into account 57 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.