With a domestic leasehold premises in Upper Clapton, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Upper Clapton with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under eighty years left, under the current Act the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Upper Clapton with in excess of 100 years left 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Using our service gives you increased control over the value of your Upper Clapton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a conversion apartment in Upper Clapton on the market with a lease of just over 72 years outstanding. Noah informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were contacted by Dr V Morgan who, having bought a purpose-built apartment in Upper Clapton in January 2011. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Upper Clapton with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected monthly. The lease ended in 2080. Taking into account 54 years outstanding we calculated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Upper Clapton residence is Flat 25, Stamford Hill Mansions Stamford Hill in April 2010. The Tribunal therefore determined that the premium to be paid by the lessee to the freeholder for the extension of the lease should be £28,984.00 This case was in relation to 1 flat. The unexpired term as at the valuation date was 59 years.