When it comes to long leasehold property in Upper Clapton, you are actually buying an entitlement to live in a property for a set period of time. Modern 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 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 left. Anyone in Upper Clapton with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has fewer than eighty years remaining, under the relevant Act the landlord can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you increased control over the value of your Upper Clapton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben owned a conversion flat in Upper Clapton on the market with a lease of a few days over 72 years left. Ben on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were phoned by Mr and Mrs. D Gunderson who, having completed a one bedroom flat in Upper Clapton in June 2009. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical homes in Upper Clapton with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2099. Having 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Upper Clapton premises 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 affected 1 flat. The unexpired residue of the current lease was 59 years.