With a residential leasehold property in Clun, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years left. Residents in Clun with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the current legislation the freeholder can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Clun with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you enhanced control over the value of your Clun leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the freeholder of her basement apartment in Clun, Phoebe initiated the lease extension process just as her lease was approaching the critical 80-year mark. The transaction completed in February 2015. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Ms Bethan García , who bought a newly refurbished flat in Clun in May 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Clun with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease elapsed on 28 July 2085. Given that there were 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus legals.
Dr Ashleigh Bailey completed a first floor flat in Clun in January 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable flats in Clun with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 20 April 2096. Considering the 71 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.