On the balance of probabilities where you own a flat in Clun you actually own a long leasehold interest over your property
Leasehold premises in Clun with over 100 years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Clun can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Clun lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her ground floor flat in Clun, Imogen started the lease extension process as the eighty year mark was rapidly advancing. The legal work was concluded in September 2013. The freeholder’s costs were restricted to a tad over 500 GBP.
Mr Eli Girard owned a one bedroom apartment in Clun in March 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Clun with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease ended in 2093. Taking into account 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.
In 2014 we were e-mailed by Ms W Hernández who, having was assigned a lease of a garden apartment in Clun in November 1995. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Clun with 100 year plus lease were worth £280,000. The average ground rent payable was £55 billed annually. The lease ended in 2104. Given that there were 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.