Unfortunately that a Clowne residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Clowne property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Clowne will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with undertake Clowne 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.
Ibrahim owned a studio apartment in Clowne on the market with a lease of just over 59 years outstanding. Ibrahim informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last month we were approach by Mrs Aimee Phillips , who moved into a garden flat in Clowne in June 1995. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparative flats in Clowne with a long lease were in the region of £295,000. The mid-range ground rent payable was £50 collected per annum. The lease end date was in 2101. Taking into account 75 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Christmas we were contacted by Mr and Mrs. Y Cook , who owned a studio flat in Clowne in May 2001. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative flats in Clowne with an extended lease were worth £250,400. The mid-range ground rent payable was £65 collected annually. The lease concluded on 17 February 2090. Taking into account 64 years left we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus legals.