Clitheroe leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Clitheroe will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Clitheroe with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Clitheroe,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Clitheroe valuers.
Jacob was the the leasehold owner of a conversion flat in Clitheroe on the market with a lease of a little over 72 years outstanding. Jacob on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant 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. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. T Sánchez owned a one bedroom flat in Clitheroe in October 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Clitheroe with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 collected per annum. The lease lapsed in 2090. Having 65 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.
Last Christmas we were called by Mr U Garcia , who bought a studio flat in Clitheroe in March 2005. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Clitheroe with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease ran out on 14 January 2101. Taking into account 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.