Why you should commence your Clun lease extension

Main reasons to commence your Clun lease extension today:

Increase your lease and increase your Clun property value

Clun leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Clun will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.

Clun property with a lease extension has roughly the same value as a freehold

Leasehold premises in Clun with more than 100 years remaining on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not finance a property with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Clun lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Clun,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Clun valuers.

Clun Lease Extension Example Cases:

Jack, Clun, Shropshire

In 2014 Jack, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Clun. Having purchased his home two decades ago, the lease term was of minimal significance. Luckily, he realised he would soon be paying way over the odds for a lease extension. Jack arranged for a lease extension at the eleventh hour last April. Jack and the freeholder eventually settled on sum of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £1,025.

Clun case:

Mr Jonathan Leroy was assigned a lease of a studio apartment in Clun in March 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical properties in Clun with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 collected yearly. The lease elapsed in 2076. Having 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of legals.

Clun case:

Last Spring we were e-mailed by Dr E Smith , who purchased a recently refurbished flat in Clun in March 2003. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar properties in Clun with a long lease were worth £208,200. The average ground rent payable was £65 invoiced yearly. The lease ran out in 2087. Given that there were 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.