There is no doubt about it a leasehold flat or house in Clowne is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Clowne will meet the qualifying criteria; that being said a lawyer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Clowne with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Clowne can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
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 Clowne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Thomas, started to get close to the 80-year threshold with the lease on his studio flat in Clowne. Having purchased his property 18 years previously, the length of the lease was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Thomas arranged for a lease extension just ahead of time last May. Thomas and the landlord who owned the flat above eventually settled on a premium of £5,500 . If the lease had gone to less than eighty years, the figure would have gone up by a minimum £950.
Last Winter we were e-mailed by Mrs M Johnson , who purchased a one bedroom apartment in Clowne in October 2010. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Identical properties in Clowne with a long lease were valued around £174,200. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired on 23 April 2077. Considering the 51 years unexpired we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
Dr T Michel was assigned a lease of a first floor flat in Clowne in February 2005. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Clowne with a long lease were worth £285,000. The average ground rent payable was £45 invoiced monthly. The lease ran out on 25 June 2097. Having 71 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.