Upper Clapton residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Retaining our service gives you increased control over the value of your Upper Clapton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Tommy, started to get close to the 80-year threshold with the lease on his leasehold apartment in Upper Clapton. Having purchased his home 19 years ago, the lease term was of minimal bearing. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Tommy was able to extend his lease just in the nick of time last January. Tommy and the freeholder ultimately settled on the final figure of £5,500 . If the lease had fallen to less than 80 years, the price would have become more exhorbitant by at least £925.
In 2014 we were contacted by Mrs W Patel who, having purchased a studio apartment in Upper Clapton in August 2011. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative premises in Upper Clapton with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 9 April 2103. Considering the 78 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
An example of a Lease Extension matter before the tribunal for a Upper Clapton flat 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 lease term was 59 years.