With a residential leasehold property in Clun, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Anyone in Clun with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years left, under the relevant statute the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Clun with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Clun 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 lawyer we work with provide it.
Subsequent to lengthy negotiations with the landlord of her ground floor flat in Clun, Charlotte commenced the lease extension process as the eighty year mark was rapidly coming. The lease extension was finalised in August 2013. The freeholder’s charges were restricted to a tad over 550 GBP.
Last Christmas we were contacted by Mr and Mrs. M Howard , who took over the lease of a ground floor flat in Clun in May 1997. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparable properties in Clun with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 12 May 2078. Taking into account 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of costs.
In 2009 we were approached by Dr Millie Young who, having moved into a first floor apartment in Clun in August 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Clun with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished on 20 June 2089. Taking into account 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of professional charges.