When it comes to residential leasehold property in Clynderwen, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Clynderwen with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Clynderwen with more than 100 years outstanding on the lease are often 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 |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Clynderwen can be a difficult process. We recommend you get guidance 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 Clynderwen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the freeholder of her ground floor flat in Clynderwen, Katherine started the lease extension process as the 80 year threshold was fast coming. The lease extension completed in January 2009. The landlord’s fees were negotiated to less than 500 pounds.
Last Autumn we were e-mailed by Mr and Mrs. K Bertrand , who owned a first floor flat in Clynderwen in April 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Clynderwen with an extended lease were worth £189,000. The average ground rent payable was £55 collected every twelve months. The lease elapsed on 18 March 2079. Considering the 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
In 2012 we were contacted by Ms Mia Wilson who, having moved into a one bedroom flat in Clynderwen in April 2009. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical homes in Clynderwen with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected per annum. The lease finished in 2099. Taking into account 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.