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Why you should commence your Upper Clapton lease extension

Top reasons for lease extension now:

A Upper Clapton lease depreciates with the years remaining on the lease.

With a long leasehold property in Upper Clapton, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should 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 particularly when there are fewer than 80 years left. Residents in Upper Clapton with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once a lease has under 80 years remaining, under the relevant Act the landlord can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold residencies in Upper Clapton with over 100 years left 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to finance a property with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Godiva Mortgages 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.
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.
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.

What makes us experts in Upper Clapton lease extensions?

The conveyancers that we work with undertake Upper Clapton 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 conveyancing solicitor we work with provide it.

Upper Clapton Lease Extension Example Cases:

Aimee, Upper Clapton, London,

In the wake of 9 months of unsuccessful correspondence with the landlord of her first floor flat in Upper Clapton, Aimee started the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was finalised in March 2015. The landlord’s costs were restricted to slightly above 550 GBP.

Upper Clapton case:

Mr David Lewis was assigned a lease of a studio apartment in Upper Clapton in March 2010. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative flats in Upper Clapton with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed in 2096. Taking into account 73 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.

Decision in Hackney

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 related to 1 flat. The number of years remaining on the existing lease(s) was 59 years.