With a residential leasehold premises in Upper Clapton, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may 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 gets disproportionately greater notably once there are fewer than 80 years remaining. Leasehold owners in Upper Clapton with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Upper Clapton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 Upper Clapton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Max, started to get close to the 80-year mark with the lease on his purpose- built apartment in Upper Clapton. Having purchased his flat two decades ago, the unexpired term was of no significance. Luckily, he recognised he needed to take steps soon on a lease extension. Max arranged for a lease extension just ahead of time in January. Max and the freeholder eventually agreed on a premium of £5,000 . If he had missed the deadline, the premium would have become more costly by a minimum £875.
Last month we were called by Mrs F Alexander , who bought a garden flat in Upper Clapton in April 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative flats in Upper Clapton with a long lease were valued around £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease termination date was on 11 August 2076. Taking into account 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Upper Clapton property 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 term was 59 years.